Analyst Upgrades: DreamWorks, VeriFone, and Denny's

Analysts upwardly revised their ratings on Dreamworks Animation Skg Inc (NASDAQ:DWA), VeriFone Systems Inc (NYSE:PAY), and Denny's Corporation (NASDAQ:DENN)

Jun 5, 2015 at 9:24 AM
facebook twitter linkedin


Analysts are weighing in on filmmaker Dreamworks Animation Skg Inc (NASDAQ:DWA), electronic payment issue VeriFone Systems Inc (NYSE:PAY), and restaurant chain Denny's Corporation (NASDAQ:DENN). Here's a quick roundup of today's bullish brokerage notes on DWA, PAY, and DENN.

  • Stifel raised its outlook on DWA to "buy" from "hold," and set a $34 price target -- representing expected upside of 23.8% to last night's close at $27.46, and a trip into annual-high territory. Specifically, the brokerage firm views the company's pipeline of younger-audience films as a positive. The stock has performed well since hitting a 52-week low of $18.16 in late January, up 51.2%. While the shares look poised to extend this momentum today -- and are up 5% ahead of the bell -- Dreamworks Animation Skg Inc could encounter resistance near $28. This area has contained the equity's advances since March 2014. Short sellers could be keeping a close eye on today's price action, considering more than 18% of the stock's float is sold short. What's more, it would take over a month to cover all of DWA's shorted shares, at average daily trading levels.

  • PAY is looking to buck its historical post-earnings trend, as the firm's lackluster current-quarter forecast overshadows a fiscal second-quarter earnings beat. Not even a round of upbeat analyst notes is helping the stock, which was last seen down 3.5% in electronic trading. Weighing in on VeriFone Systems Inc was Susquehanna, BMO, and Wedbush, which raised their respective price targets to $44, $45, and $47 -- all levels not surpassed by PAY since May 2012. Longer term, the security is up 13.4% year-over-year, due to several big bounces off its 320-day moving average. In fact, the stock hit a three-year high of $39.25 on Wednesday, and settled at $38.35 yesterday. Meanwhile, option traders have been buying to open puts over calls at a rapid-fire rate in recent months, per PAY's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.23, which rests at an annual high.

  • In addition to adding DENN to its "Best Ideas" list, Wedbush also raised its rating on the stock to "outperform" from "neutral," and boosted its price target to $14 from $11. Not only does this new target stand at a 32.5% premium to Thursday's close at $10.57, but also a move into record-high waters. While the stock is boasting an impressive 61.4% year-over-year lead -- and is pointed 4.1% higher in pre-market action -- DENN has struggled a bit since hitting an all-time peak of $12.10 in mid-April. More recently, the equity has been sandwiched between support at its 160-day moving average and resistance in the $11 region. On the sentiment front, Denny's Corporation's gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 0.26 indicates near-the-money call open interest almost quadruples put open interest among options expiring in three months or less.

Bernie's Best Stock Bets for Summer 2021

1608308875

 




 
Special Offers from Schaeffer's Trading Partners