Analyst Upgrades: Groupon, Inc., Sonic Corp., and NVIDIA Corporation

Analysts upwardly revised their ratings on Groupon Inc (GRPN), Sonic Corporation (SONC), and NVIDIA Corporation (NVDA)

by Karee Venema

Published on Mar 25, 2015 at 9:12 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in on coupon concern Groupon Inc (NASDAQ:GRPN), drive-in restaurant operator Sonic Corporation (NASDAQ:SONC), and chipmaker NVIDIA Corporation (NASDAQ:NVDA). Here's a quick roundup of today's bullish brokerage notes on GRPN, SONC, and NVDA.

  • GRPN has been enjoying a lift higher from its 100-day moving average since an earnings-induced bull gap sent the shares barreling north of this rising trendline in late October. After closing last night at $7.56, the equity is poised to take a sharp bounce from here today, as Wunderlich Securities upped its outlook to "buy" from "hold," and raised its price target to $10 from $6 -- territory not charted since February 2014. More upgrades could be on the horizon, too, should the stock extend today's positive price action. Of the 20 analysts covering Groupon Inc, 12 maintain a lukewarm "hold" recommendation, compared to eight "strong buys."

  • SONC received no fewer than four price-target hikes, after the company unveiled better-than-expected fiscal second-quarter earnings. Included in the bunch was Sterne Agee, which raised its price target to $41 from $37, and Jefferies, which boosted its target price to $36 from $29. Elsewhere on the sentiment front, short-term speculators have shown a preference for calls over puts toward a stock that's rallied nearly 35% year-to-date, and hit a record high of $36.73 yesterday before settling at $36.66. Specifically, Sonic Corporation's Schaeffer's put/call open interest ratio (SOIR) of 0.34 ranks lower than 88% of similar readings taken in the past 12 months.

  • Susquehanna upped its price target on NVDA to $19 from $18, although this still represents a discount to Tuesday's close at $22.40. Technically speaking, the stock has been a standout over the past 52 weeks, boasting a 21.4% lead -- and tagging a four-year peak of $23.60 last Friday. In spite of this, there's still plenty of skepticism to be found. Roughly 57% of covering analysts maintain a "hold" or worse rating on the shares, while the average 12-month price target of $23.20 sits just 3.6% above NVDA's current price. Elsewhere, a healthy 9.3% of the security's float is sold short, representing more than two weeks' worth of pent-up buying demand, at average daily trading levels. Should NVIDIA Corporation continue to linger in multi-year-high territory, another round of bullish brokerage notes and/or a capitulation among short sellers could help fuel the equity's fire.

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