Analyst Upgrades: GoPro, Inc., Ambarella, Inc., and LinkedIn Corporation

Analysts upwardly revised their ratings on GoPro Inc (NASDAQ:GPRO), Ambarella Inc (NASDAQ:AMBA), and LinkedIn Corp (NYSE:LNKD)

by Karee Venema

Published on Jun 3, 2015 at 9:28 AM
Updated on Jun 3, 2015 at 9:36 AM

Analysts are weighing in on wearable camera maker GoPro Inc (NASDAQ:GPRO), semiconductor specialist Ambarella Inc (NASDAQ:AMBA), and professional networking site LinkedIn Corp (NYSE:LNKD). Here's a quick roundup of today's bullish brokerage notes on GPRO, AMBA, and LNKD.

  • GPRO is up 3% in electronic trading -- and on its way to explore levels not seen since early January -- after J.P. Morgan Securities raised its price target to $75 from $70. Specifically, the brokerage firm said recent developments -- including plans to build a drone and GoPro Inc's new touchscreen camera -- "should translate into strong capture-device growth through 2016 and into 2017, and yield media and software revenue opportunities." Technically speaking, GPRO has added more than 57% since hitting a 2015 low of $37.13 on March 10, and settled last night at $58.40. Additional gains could be on the horizon, should shorts begin to capitulate due to this upward momentum. Roughly one-quarter of GPRO's float is sold short, and would take more than four sessions to cover, at the stock's average daily pace of trading. Looking ahead, GPRO will host its annual shareholder meeting next Monday.

  • It's been a busy week for AMBA, whose chips are used in GPRO's cameras. The stock rallied to a record high of $95.67 on Monday -- thanks to a bullish brokerage note -- only to retreat from this mark yesterday, and close the session at $92.21. Today, the shares are headed higher once again, after Ambarella Inc's strong turn in the earnings confessional was met with a round of upbeat analyst attention. Included in the bunch was an upgrade to "hold" from "underperform" at Needham, and a price-target hike to $123 from $96 at Pacific Crest. Year-to-date, the stock has already added almost 82%, and a continued rise could prompt another round of upwardly revised analyst notes. In fact, half of those covering the shares maintain a "hold" or "strong sell" recommendation, while the average 12-month price target of $80.91 stands at a discount to current trading levels. AMBA could continue to garner some attention tomorrow, when it holds its annual shareholder meeting.

  • J.P. Morgan Securities added LNKD to its "U.S. equity analyst focus list," explaining it believes "LinkedIn is the most actionable name in our coverage universe." The stock has certainly been on a roll this week -- up 5.1% from last Friday's close at $194.93 to trade at $204.81 -- on Icahn-related rumors. The equity looks poised to extend this momentum today, and possible take out recent resistance at its 320-day moving average. This should come as good news for option traders, who have been scooping up long calls over puts at a rapid-fire rate in recent weeks. Specifically, LinkedIn Corp's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.14 ranks in the 94th percentile of its annual range. Meanwhile, LNKD's annual shareholder meeting is scheduled for 1 p.m. ET today.

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