Analyst Upgrades: The Walt Disney Company, Twitter, Inc., and Seadrill Limited

Analysts upwardly revised their ratings on Walt Disney Co (NYSE:DIS), Twitter Inc (NYSE:TWTR), and Seadrill Ltd (NYSE:SDRL)

by Josh Selway

Published on May 4, 2015 at 9:16 AM
Updated on May 5, 2015 at 1:03 PM

Analysts are weighing in today on media conglomerate Walt Disney Co (NYSE:DIS), social media name Twitter Inc (NYSE:TWTR), and offshore drilling concern Seadrill Ltd (NYSE:SDRL). Here's a quick roundup of today's bullish brokerage notes on DIS, TWTR, and SDRL.

  • DIS has been on a tear in 2015, adding 17.3% to finish Friday at $110.52. The stock could hit record highs today, with the shares pointed 0.8% higher in electronic trading, thanks to a price-target hike to $120 from $110 -- and a reiterated "outperform" recommendation -- at RBC. Walt Disney Co may have more bullish analyst attention coming its way, given the skepticism still seen on the Street. Even though the security has been a long-time outperformer, nine out of 20 brokerage firms still rate it a tepid "hold." On top of this, DIS' average 12-month price target of $110.23 is below current trading levels. It wouldn't be surprising to see a round of price-target increases and/or analyst upgrades boost the shares, especially if the company reports strong fiscal second-quarter numbers -- now slated for release tomorrow morning, due to the untimely death of DIS board member Sheryl Sandberg's husband.

  • Last week was dreadful for TWTRwith the stock dropping over 25% after an earnings debacle, to close at $37.84. This morning, however, the shares are set to take back some of that, gaining 1.3% ahead of the bell, after Stifel raised its opinion to "hold" from "sell." The brokerage firm said that Twitter Inc is mispriced given its growth potential and competitive position in the market. Options traders have also shown some faith in TWTR. Over the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has amassed a call/put volume ratio of 2.85, ranking in the 94th percentile of its annual range.

  • SDRL is up 2.3% ahead of the open, following a $2 price-target bump to $24 at Zephirin Group. Over the long term, the shares have struggled on the charts, falling over 60% in the past 12 months. However, the stock has been muscling higher over the past month, settling at $13.22 on Friday -- a third straight finish atop its 20-week moving average. Seadrill Ltd's Schaeffer's put/call open interest ratio (SOIR) comes in at 1.90 -- meaning put open interest almost doubles call open interest among options expiring in three months or less. Plus, this ratio is higher than 93% of readings from the past year, meaning short-term speculators are far more put-focused than normal.

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