Analyst Upgrades: Tesla Motors, Inc., Netflix, Inc., and NuVasive, Inc.

Analysts upwardly revised their ratings on Tesla Motors Inc (NASDAQ:TSLA), Netflix, Inc. (NASDAQ:NFLX), and NuVasive, Inc. (NASDAQ:NUVA)

by Josh Selway

Published on May 5, 2015 at 9:23 AM

Analysts are weighing in today on electric automaker Tesla Motors Inc (NASDAQ:TSLA), streaming video giant Netflix, Inc. (NASDAQ:NFLX), and medical device manufacturer NuVasive, Inc. (NASDAQ:NUVA). Here's a quick roundup of today's bullish brokerage notes on TSLA, NFLX, and NUVA.

  • Jefferies started coverage on TSLA with a "buy" rating and $350 price target, sending the shares 3.4% higher in pre-market trading. The brokerage firm explained its positive stance, saying, "Worries about China sales are overblown." Since touching a 2015 low of $181.40 on March 27, the equity has added 27% to finish at $230.51 yesterday. Still, put open interest outstrips call open interest among options expiring in three months or less, according to Tesla Motors Inc's Schaeffer's put/call open interest ratio (SOIR) of 1.25. Additionally, this reading is higher than 72% of all similar readings from the past year, meaning short-term speculators are more put-skewed than normal.

  • NFLX is up 2.5% ahead of the open, thanks to an upgrade at BofA-Merrill Lynch, which raised its outlook to "buy" from "neutral." It's not like the shares needed a boost -- they've already added over 62% in 2015 and touched a record high of $576.13 on April 20. Still, plenty of analysts have been hesitant to upgrade the stock, despite its blistering pace up the charts. Of the 29 analysts covering Netflix, Inc., 11 still rate it a "hold" or worse. In other words, there's potential for future bullish analyst notes to give the stock a lift. Yesterday, NFLX settled at $554.90.

  • Lastly, there's NUVA, which is 3.5% higher in electronic trading. The security is benefiting from first-quarter figures that beat forecasts, and also a price-target hike at BMO to $52 from $50. The equity is now set to regain all of its 2015 losses. This will likely make options traders happy. Over the past 50 sessions at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), over 30 NuVasive, Inc. calls have been bought to open for every put. The resultant ratio of 30.58 ranks in the 72nd percentile of its annual range, indicating option buyers have preferred calls over puts by a greater-than-usual margin in recent months. NUVA closed yesterday at at $45.66.

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