Analyst Upgrades: Wal-Mart Stores, SunEdison, TrueCar

Analysts upwardly revised their ratings on Wal-Mart Stores, Inc. (WMT), Sunedison Inc (SUNE), and TrueCar Inc (TRUE)

Feb 20, 2015 at 9:40 AM
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Analysts are weighing in today on blue chip Wal-Mart Stores, Inc. (NYSE:WMT), silicon wafer manufacturer Sunedison Inc (NYSE:SUNE), and online analytics platform TrueCar Inc (NASDAQ:TRUE). Here's a quick roundup of today's bullish brokerage notes on WMT, SUNE, and TRUE.

  • Yesterday, WMT presented fourth-quarter earnings that beat analysts' expectations, but a disappointing 2015 forecast weighed on the shares. The company also announced it would be raising wages for a half-million employees. While some analysts took a bearish angle following the news -- such as Deutsche Bank and J.P. Morgan Securities, which each cut their price targets by $4 -- S&P Capital was encouraged by the stock's latest developments. The brokerage firm raised its price target to $92, representing a 10.1% premium to Wal-Mart Stores, Inc.'s current price of $83.52. Even though the equity is 1% lower today, longer term, it's been strong, tacking on 13.5% in the past 52 weeks. As a result, call buyers have stepped up at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). WMT's 10-day call/put volume ratio across those exchanges comes in at 3.90, in the 88th annual percentile.

  • On the heels of its latest earnings report, SUNE announced a $5 million contribution for a major solar workforce initiative as part of their partnership with GRID Alternatives. Meanwhile, RBC raised its price target to $28 from $24, and kept its "outperform" rating on the shares. The encouraging note mirrors the sentiment already seen on the Street, as 80% of covering analysts rate SunEdison, Inc. a "buy" or better. SUNE has been a technical wonder, adding 28.5% since its 2015 low of $17.09 on Jan. 6 to trade at $22. Regardless, nearly a third of the security's float is still in the hands of short sellers, representing over a week's worth of pent-up buying demand, at normal trading volumes. If the shares continue outperforming on the charts, a short-squeeze situation could ensue.

  • TRUE dropped 6.4% out of the gate to $19.45, after its fourth-quarter numbers failed to excite shareholders. Elsewhere, however, J.P. Morgan Securities and JMP Securities each raised their price targets by $1, to $23 and $24, respectively, while maintaining the equivalent of "buy" ratings on the shares. Still, today's downward price movement is only a continuation of what TrueCar Inc has seen in 2015, with the equity off 15%. Speculators remain upbeat, as 16.41 calls have been purchased for every put in the past 50 sessions at the ISE, CBOE, and PHLX.

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