Analyst Upgrades: Urban Outfitters, Inc., GoPro Inc, and Ambarella Inc

Analysts upwardly revised their ratings on Urban Outfitters, Inc. (URBN), GoPro Inc (GPRO), and Ambarella Inc (AMBA)

by Alex Eppstein

Published on Jul 14, 2015 at 9:04 AM

Analysts are weighing in today on retailer Urban Outfitters, Inc. (NASDAQ:URBN), camera concern GoPro Inc (NASDAQ:GPRO), and semiconductor firm Ambarella Inc (NASDAQ:AMBA). Here's a quick roundup of today's bullish brokerage notes on URBN, GPRO, and AMBA.

  • Jefferies bumped its on rating on URBN to "buy" from "hold" -- and its price target to $50 from $36 -- sending the shares 2% higher ahead of the bell. Longer term, though, the stock is just 0.7% above its year-to-date breakeven mark, settling Monday at $35.38. In fact, Urban Outfitters, Inc. has spent the past few weeks consolidating in the $35-$36 area, after gapping lower on earnings in mid-May. Analysts are split in their outlook toward URBN. Thirteen brokerages currently rate the equity a "buy" or better, compared to 14 "holds."

  • GPRO is up 3.2% ahead of the bell, after Barclays upgraded its rating to "overweight" from "equal weight," and boosted its price target to $65 from $50, citing the company's "strong execution since the IPO" and waxing optimistic on the new Hero4. On the charts, GoPro Inc has been on a steady upward trajectory since bottoming at $37.13 in early March, tacking on 40% to trade at $52.11 -- helped by a recent bounce off its 20-week moving average. More gains could be on the way, with the company due to report earnings one week from tonight. In the session following GPRO's late-April release, the stock soared 12.6%. A repeat performance could put the pressure on option bears, as the security's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.87 ranks in the 72nd annual percentile. A capitulation among these skeptics could produce tailwinds.

  • Despite its pullback over the past month, AMBA has been a beast in 2015, nearly doubling in value to rest at $99.15. Canaccord Genuity rewarded the outperformer, raising its price target to $120 from $115 -- and setting the shares on track for a 1.6% pop out of the gate. At the ISE, CBOE, and PHLX, traders have bought to open puts over calls at an accelerated clip, per Ambarella Inc's 50-day put/call volume ratio of 0.99 -- which sits just 12 percentage points from a 12-month peak. A mass exodus of these doubters could lead to a fresh wave of buying power for AMBA.

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