Analyst Upgrades: Ambarella, Tesla Motors, and Office Depot

Analysts upwardly revised their ratings on Ambarella Inc (NASDAQ:AMBA), Tesla Motors Inc (NASDAQ:TSLA), and Office Depot Inc (NASDAQ:ODP)

Jun 25, 2015 at 9:18 AM

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Analysts are weighing in today on semiconductor stock Ambarella Inc (NASDAQ:AMBA), electric automaker Tesla Motors Inc (NASDAQ:TSLA), and retailer Office Depot Inc (NASDAQ:ODP). Here's a quick roundup of today's bullish brokerage notes on AMBA, TSLA, and ODP.

AMBA is getting a shot in the arm this morning, up 1.7% after Stifel raised its price target to $115 from $105. The bullish note echoes the recent analyst attention heaped on AMBA in the wake of a nasty pullback earlier this week. Still, the shares have doubled in value this year to trade at $101.60. Regardless, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been gambling on a slide in recent weeks. Ambarella Inc's 10-day put/call volume ratio across those exchanges is 1.05 -- in the 86th percentile of its annual range. Should these skeptics throw in the towel, AMBA could benefit from tailwinds.

Jefferies boosted its price target on TSLA to $360 from $350. The stock has been racing up the charts in 2015, adding more than 19% to sit at $265.17. Even more impressive, since bottoming at a late-March annual low of $181.40, the shares have rallied 46%. As such, short sellers may be on pins and needles. Over one-quarter of Tesla Motors Inc's float is sold short, which equates to nearly eight sessions' worth of pent-up buying demand, at typical daily trading levels. A capitulation among shorts could intensify buying power on TSLA.

Tesley upgraded ODP to "outperform" from "market perform," expecting Staples, Inc.'s (NASDAQ:SPLS) buyout price to rise more than 20% from where it is now. The brokerage firm also expects the deal to be finalized no later than early 2016, despite antitrust concerns cropping up yesterday after SYSCO Corporation's (NYSE:SYY) proposed merger with US Foods hit a snag. The heightened uncertainty prompted Office Depot Inc to slip 2.4% yesterday before closing at $8.89, narrowing the shares' year-to-date advance to 3.6%. Ahead of the bell, ODP is pointed 0.9% higher.

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