Analyst Update: Gigamon Inc., Mattel, Inc., and TrueBlue, Inc.

Analysts adjusted their ratings on Gigamon Inc (GIMO), Mattel, Inc. (MAT), and Trueblue Inc (TBI)

by Griffin Kruse

Published on Apr 24, 2015 at 11:44 AM
Updated on Apr 24, 2015 at 11:59 AM

Analysts are weighing in today on IT issue Gigamon Inc (NYSE:GIMO), toymaker Mattel, Inc. (NASDAQ:MAT), and blue-collar staffing service Trueblue Inc (NYSE:TBI). Here's a quick look at today's brokerage notes on GIMO, MAT, and TBI.

  • GIMO is the best performer on the Big Board thus far. The shares are 22% higher at $28.74 -- and earlier touched an annual high of $29.20 -- after the firm posted first-quarter earnings that surpassed the Street's expectations. In response, no fewer than four brokerage firms hiked their price targets on the equity, including Raymond James (to $28) and Credit Suisse (to $30), which both underscored "outperform" ratings. Technically speaking, Gigamon Inc has been trending higher recently, with the shares up about 62.8% year-to-date. In fact, today's rally has GIMO on pace to close its April 2014 bear gap. Accordingly, short sellers have been hitting the bricks, as short interest declined by about 30.6% over the past two reporting periods. However, short interest still comprises 5.2% of GIMO's available float, which would take over a week to cover, at average trading volumes. Elsewhere, GIMO's average 12-month price target of $23.83 represents a 17% deficit to current trading levels, suggesting additional price-target hikes could be in store.
  • Goldman Sachs and B. Riley both boosted their price targets on MAT, with the former lifting its price target to $37 from $26, and the latter hiking its price target to $31 from $29. Additionally, Goldman Sachs upgraded Mattel, Inc. to "buy" and waxed optimistic on new management, while B. Riley underscored its "buy" rating. At last check, the shares of MAT were 4.2% higher to $30.14, trimming their year-to-date loss to 2.6%. Sentiment in the options pits has been bullish, as MAT's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.37 stands in the 93rd percentile of its annual range. Short sellers have been active on the stock, though, as over 10% of its available float is sold short.          
  • Like GIMO, the shares of TBI are benefiting from a post-earnings boost, up 18.1% to $29.31, after the firm's first-quarter earnings beat consensus estimates. In addition, current-quarter guidance topped the consensus on the Street. Reacting was Deutsche Bank, which raised its price target by $1 to $31 while underscoring its "buy" rating. On the charts, the shares of Trueblue Inc have rebounded 48% since hitting an annual low of $19.82 on Jan. 20, and are now within a chip-shot of all-time highs. However, short-term traders have been more put-heavy than usual, as TBI's Schaeffer's put/call open interest ratio (SOIR) of 2.50 is higher than 79% of all equivalent readings from the past year. Simply stated, near-term speculators have only been more put-skewed 21% of the time over the past 12 months. Meanwhile, the brokerage bunch is divided on the stock, as three out of five covering analysts rate it a "hold." Plus, TBI's average 12-month price target of $27.17 sits below the shares' current perch, leaving the door wide open for more upbeat analyst attention. 


A Schaeffer's exclusive


Access your FREE insider report before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Stocks Eye Notable Weekly Gains on 3-Day Surge
Stocks are eyeing big weekly gains
WW Stock Brushes Off Bull Note
Morgan Stanley upgraded the Weight Watchers parent to "overweight" from "equal weight"
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.