Analyst Update: BlackBerry Limited, Tower Semiconductor Ltd, and Linear Technology Corporation

Analysts adjusted their ratings on BlackBerry Ltd (NASDAQ:BBRY), Tower Semiconductor Ltd. (USA) (NASDASQ:TSEM), and Linear Technology Corporation (NASDAQ:LLTC)

by Griffin Kruse

Published on May 14, 2015 at 1:40 PM
Updated on May 14, 2015 at 1:46 PM

Analysts are weighing in today on mobile device concern BlackBerry Ltd (NASDAQ:BBRY), semiconductor manufacturer Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM), and integrated circuit specialist Linear Technology Corporation (NASDAQ:LLTC). Here's a quick look at today's brokerage notes on BBRY, TSEM, and LLTC. 

  • Cowen and Company raised its price target on BBRY to $11 from $10 while underscoring its "market perform" rating, amid lingering rumors that the company is a potential takeover target for Apple Inc. (NASDAQ:AAPL). Today, the shares of BlackBerry Ltd are 0.4% higher at $10.30, and since hitting an annual low of $8.59 on March 31, are up over 20%. However, options traders have been picking up puts at a faster-than-usual clip, as BBRY's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.46 is higher than 86% of all similar readings from the past year. The brokerage bunch has been skeptical of the equity as well, as about 84% of covering analysts rate it a "hold" or worse. Meanwhile, short interest declined by 11.8% during the last reporting period, but still accounts for 17% of the stock's available float. It would take these bettors nearly 11 sessions to cover their positions, at average trading volumes. Should BBRY extend its recent rebound, a short squeeze could add fuel to the fire.
  • The shares of TSEM are 4.7% higher at $15.99, after the company's first-quarter earnings and current-quarter guidance surpassed expectations. Reacting was Ascendiant Capital, which raised its price target on the stock to $28 from $24 -- in five-year-high territory -- while reiterating its "buy" opinion. Technically speaking, today's positive price action is more of the same for Tower Semiconductor Ltd., as the shares are up 85.9% year-over-year. Accordingly, traders have favored calls over puts in the options pits -- over the past 10 days at the ISE, CBOE, and PHLX, 19.59 TSEM calls have been bought to open for every put.  
  • J.P. Morgan Securities upgraded LLTC to "neutral" from "underweight" and raised its price target to $48 from $40, sending the shares 1.6% higher to $46.79. Looking back, Linear Technology Corporation has been fairly range-bound in 2015, with the shares trading between $45 and $49. Year-to-date, though, the shares are up 2.6%. Options traders have been betting on a pullback, as LLTC's 10-day ISE/CBOE/PHLX put/call volume ratio of 3.26 stands in the 94th annual percentile. Simply stated, puts have only been bought to open with more rapidity 6% of the time over the past year. Short sellers have taken a shine to the security as well, as short interest surged by 9.4% during the last reporting period. It now comprises 5.5% of LLTC's available float, which would take five sessions to buy back, at average trading volumes.

A Schaeffer's exclusive

6 Sectors for Summer

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

The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.