Analyst Upgrades: Red Hat, Momenta, First Solar

Analysts are weighing in on software solution specialist Red Hat Inc (NYSE:RHT), biotechnology firm Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), and alternative energy issue First Solar, Inc. (NASDAQ:FSLR). Here's a quick roundup of today's bullish brokerage notes on RHT, MNTA, and FSLR.

• RHT last night reported first-quarter earnings that beat analysts' estimates, and Wall Street responded in kind. Specifically, the stock received no fewer than eight price-target hikes, including one from Cantor Fitzgerald to $90 from $85. This represents expected upside of 12.5% to current trading levels. Amid this bullish backdrop, the shares are up 1.8% out of the gate at $79.98, and just tagged a fresh 15-year high of $80.46. Technically speaking, the security has now tacked on 15.6% year-to-date. Option traders, meanwhile, have been bracing for a pullback by buying to open puts over calls at a rapid-fire rate in recent months. In fact, Red Hat Inc's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.56 ranks just 2 percentage points from a 52-week peak.


• Biotechs have had a big week, and today, MNTA is in the spotlight. The stock is up 1.2% at $24.70 out of the gate, after the company's U.S. launch of its generic multiple sclerosis drug was met with upwardly revised price targets from Brean Capital (to $31) and Stifel (to $29). The equity has been on fire since hitting its year-to-date low of $10.22 in early February, more than doubling in value. Additionally, the stock tagged the $25.56 mark this morning -- its loftiest perch since July 2010. A continued rise may prompt short sellers to start throwing in the towel, which could spell additional gains for Momenta Pharmaceuticals, Inc. down the road. Nearly 17% of the security's float is sold short, representing six sessions' worth of pent-up buying demand, at average daily volumes.


• FSLR is up 1.3% in early trading, after Needham upped its price target on the shares to $73 from $69. The brokerage firm cited the successful IPO of 8Point3 Energy Partners (CAFD) -- a yieldco formed between FSLR and SunPower Corporation (NASDAQ:SPWR) -- as the catalyst, saying CAFD is "uniquely positioned as a solar-only yieldco with joint sponsorships by two of the largest solar developers in the world." Separately, CAFD priced its IPO at $21 per share this morning. On the charts, the shares of FSLR have been gaining ground since bouncing in the $49 region last week, up more than 7% to trade at $52.64. Option traders have been rolling the dice on more upside, too. At the ISE, CBOE, and PHLX, for example, First Solar, Inc.'s 10-day call/put volume ratio of 5.29 rests in the 99th annual percentile. In other words, calls have been bought to open over puts with more rapidity just 1% of the time within the past year.