Analyst Upgrades: GoPro, Ambarella, and Exxon Mobil

Analysts upwardly revised their ratings on GoPro, Inc. (NASDAQ:GPRO), Ambarella Inc (NASDAQ:AMBA), and Exxon Mobil Corporation (NYSE:XOM)

Jul 22, 2015 at 9:10 AM
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Analysts are weighing in on wearable camera maker GoPro, Inc. (NASDAQ:GPRO), semiconductor concern Ambarella Inc (NASDAQ:AMBA), and oil-and-gas issue Exxon Mobil Corporation (NYSE:XOM). Here's a quick roundup of today's bullish brokerage notes on GPRO, AMBA, and XOM.

  • Since taking a sharp bounce off its 80-day moving average earlier this month, GPRO has tacked on 25.6% to trade at $62.04. The equity looks poised to extend this positive price action today, after the company's better-than-expected earnings report and upbeat current-quarter revenue forecast was met with a round of bullish brokerage attention. Specifically, the stock received price-target hikes from Wedbush (to $76), Raymond James (to $71), Barclays (to $71), Baird (to $70), and Dougherty (to $70). While today's projected price move is good news for a recent crop of option traders, it's bad news for short sellers. Short interest jumped 12.6% in the latest reporting period, and now accounts for nearly 18% of GoPro, Inc.'s available float. A capitulation from some of the weaker bearish hands could create tailwinds for GPRO going forward.

  • AMBA -- which supplies GPRO with video processors -- saw its price target raised to $122 from $120 at Canaccord Genuity overnight, the second such boost the brokerage firm has issued in as many weeks. The stock is modestly higher in electronic trading -- and on track to add to its impressive 133% year-to-date advance -- which could prompt more analysts to follow in Canaccord Genuity's bullish footsteps. Currently, 45.5% of covering analysts maintain a lukewarm "hold" rating on the outperformer, while the average 12-month price target of $105.27 stands at a discount to Tuesday's settlement at $118.18. Ambarella Inc is tentatively slated to unveil its own quarterly results in early September.

  • Despite crude oil's recent struggles, Goldman Sachs raised XOM to "conviction buy" from "buy." On the charts, the stock has been tracking crude's slide -- shedding 22% since hitting a record high of $104.76 last July. In fact, the security tagged a three-year low of $81.43 yesterday, before settling at $81.66. Option traders, meanwhile, have been eyeing more downside, per Exxon Mobil Corporation's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.84 -- in the 83rd annual percentile. Simply stated, puts have been bought to open over calls at a faster-than-usual clip in recent months.
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