Analyst Upgrades: Citigroup, Palo Alto Networks, GrubHub

Analysts upwardly revised their ratings on Citigroup Inc (C), Palo Alto Networks Inc (PANW), and GrubHub Inc (GRUB)

Mar 3, 2015 at 9:27 AM
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Analysts are weighing in today on financial firm Citigroup Inc (NYSE:C), cybersecurity issue Palo Alto Networks Inc (NYSE:PANW), and online restaurant concern GrubHub Inc (NYSE:GRUB). Here's a quick roundup of today's bullish brokerage notes on C, PANW, and GRUB.

  • C is making headlines this morning, after the firm said it agreed to sell its OneMain Financial Holdings consumer finance unit to Springleaf Holdings Inc (NYSE:LEAF) for a cool $4.25 billion in cash. Meanwhile, J.P. Morgan Securities upgraded Citigroup Inc to "overweight" from "neutral," and lifted its price target by $4 to $58, citing the company's deal with Visa Inc (NYSE:V) and Costco Wholesale Corporation (NASDAQ:COST). On the charts, C is staring up at former support in the $54 region -- also home to its year-to-date breakeven level -- which could reverse roles to serve as resistance. In fact, C sports a 14-day Relative Strength Index (RSI) of 68 -- on the cusp of overbought territory, suggesting a short-term pullback could be in the cards. The stock closed Monday at $53.49.

  • PANW unveiled stronger-than-expected fiscal second-quarter earnings (subscription required) and offered upbeat guidance, triggering a bounty of bullish brokerage notes. Nearly a dozen analysts have upped their price targets on PANW, including Raymond James, which lifted its target to $173 from $160. Palo Alto Networks Inc has been a broad-market standout of late, more than doubling over the past year to sit at $145.98. In fact, the security touched a record high of $146.40 just yesterday. As such, option players have been upping the bullish ante. The stock's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 2.14 -- just 6 percentage points from an annual peak.

  • Finally, GRUB jumped 5% yesterday to land at $44.09 -- a six-month high -- thanks to well-received guidance. Brean Capital weighed in on GrubHub Inc this morning, lifting its price target by $5 to $50 and underscoring a "buy" recommendation. Most analysts are already aboard the stock's bullish bandwagon, as GRUB boasts 13 "strong buys," compared to two lukewarm "holds" and not a single "sell." Likewise, the consensus 12-month price target of $48.63 stands in uncharted territory for the shares, which have added 21.4% in 2015.

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