Analyst Upgrades: Apple Inc., GoPro, Inc., and Red Hat, Inc.

Analysts upwardly revised their ratings on Apple Inc. (AAPL), GoPro Inc (GPRO), and Red Hat Inc (RHT)

by Karee Venema

Published on Mar 26, 2015 at 9:24 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in on iPhone purveyor Apple Inc. (NASDAQ:AAPL), wearable camera maker GoPro Inc (NASDAQ:GPRO), and software specialist Red Hat Inc (NYSE:RHT). Here's a quick roundup of today's bullish brokerage notes on AAPL, GPRO, and RHT.

  • AAPL saw its price target lifted to $145 from $140 at Credit Suisse, representing expected upside of 17.5% to last night's close a $123.38 -- and a trek into uncharted territory. All-time peaks have not been a problem for the newest member of the Dow Jones Industrial Average, though, with AAPL hitting its loftiest perch to date as recently as Feb. 24. In the options pits, short-term speculators have shown a preference for calls over puts, as evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.64, which ranks in the 23rd annual percentile. Meanwhile, on the fundamental front, reports are circling that Nine Inch Nails frontman Trent Reznor will have a "major role" in Apple Inc.'s Beats Music service redesign. Additionally, the company is planning an iPhone trade-in program with Foxconn Technology Group in China.

  • For the second day in a row, GPRO has received some love from the brokerage bunch. This time, from Baird, which initiated coverage on the stock with an "outperform" rating. This may be why the security is pointed nearly 2% higher in electronic trading -- after settling last night at $42.30 -- and on pace to add to its 4.7% week-to-date gain. Options traders should be pleased with this week's price action, considering speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 2.01 calls for every put over the past two weeks. What's more, GoPro Inc's Schaeffer's Volatility Index (SVI) of 46% rests at a record low, meaning near-term options are relatively inexpensive at the moment.

  • RHT is poised to pop 6% out of the gate, after the company unveiled better-than-expected fourth-quarter earnings and announced a $500 million stock buyback program. Adding to the bullish buzz is a round of upbeat analyst attention, including upwardly revised price targets at Susquehanna (by $11 to $86), and CLSA (by $11 to $83) -- both representing moves to levels not seen since February 2000. Longer term, shares of Red Hat Inc are up more than 22% year-over-year, and should they extend today's post-earnings momentum, another round of price-target hikes could be on the horizon. The security's average 12-month price target of $73.29 stands at a slim 7.1% premium to Wednesday's close at $68.45.

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