Analyst Upgrades: Texas Instruments, UnitedHealth Group

Analysts upwardly revised their ratings on Texas Instruments Incorporated (TXN), Potash Corp./Saskatchewan (USA) (POT), UnitedHealth Group Inc. (UNH)

Jan 27, 2015 at 9:21 AM
facebook twitter linkedin


Analysts are weighing in today on semiconductor manufacturer Texas Instruments Incorporated (NASDAQ:TXN), fertilizer concern Potash Corp./Saskatchewan (USA) (NYSE:POT), and blue chip UnitedHealth Group Inc. (NYSE:UNH). Here's a quick roundup of today's bullish brokerage notes on TXN, POT, and UNH.

  • TXN is off 0.9% in electronic trading, despite seeing its price target raised by no fewer than seven brokerage firms after posting higher fourth-quarter results. The most ambitious of the bunch was RBC, which raised its price target to $66 from $65, and kept its "outperform" rating. Elsewhere, Texas Instruments Incorporated has been stellar on the charts, adding 32.8% from its October low of $41.47 to close yesterday at $55.05. Still, analysts have been slow to give TXN the credit it deserves, as 65% of brokerage firms maintain "hold" or worse ratings. Plus, the stock has already surpassed its consensus 12-month price target of $53.18. Should the security's strong technical run continue, additional price-target increases and/or upgrades could add even more fuel to its fire.

  • POT had its price-target lifted by three brokerage firms. Specifically, TD Securities and HSBC both raised their target prices to $41 -- from $40 and $35.25, respectively -- while deeming the stock a "buy." Also, Susquehanna raised its target price by $3 to $35, while keeping its "neutral" rating. The positive attention is nothing new for a stock that has added over 12% in the past year to finish yesterday at $35.89. Option traders have kept their bearish stance, though, picking up puts ahead of Thursday morning's earnings report. Potash Corp./Saskatchewan's (POT) 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.62 ranks in the 68th annual percentile, suggesting speculators have bought to open puts over calls at an accelerated clip in the past two weeks.

  • Finally, even with a price-target hike from Oppenheimer to $128 -- territory never before explored -- from $115, UNH is down 0.5% in pre-market trading, pressured by its fellow blue chips. Regardless, the stock has been a technical standout, outperforming the S&P 500 Index (SPX) by roughly 16 percentage points in the past three months, closing yesterday at $111.61. In fact, the equity tagged a record high of $114.32 on Friday. In UnitedHealth Group Inc.'s options pits, however, short-term speculators have taken a put-skewed approach. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.02 outranks 70% of all readings in the past year.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners