Analyst Upgrades: Amazon, Starbucks, Juniper Networks

Analysts upwardly revised their ratings on Amazon.com, Inc. (NASDAQ:AMZN), Starbucks Corporation (NASDAQ:SBUX), and Juniper Networks, Inc. (NYSE:JNPR)

Jul 24, 2015 at 9:19 AM
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Analysts are weighing in on e-commerce concern Amazon.com, Inc. (NASDAQ:AMZN), java giant Starbucks Corporation (NASDAQ:SBUX), and networking communications specialist Juniper Networks, Inc. (NYSE:JNPR). Here's a quick roundup of today's bullish brokerage notes on AMZN, SBUX, and JNPR.

  • It's poised to be a record-setting day for AMZN, with the shares up 22% in electronic trading. Today's bullish backdrop comes courtesy of the firm unexpectedly banking a second-quarter profit and a subsequent round of upbeat analyst notes. Among those chiming in on the stock were B. Riley -- which boosted its outlook to "buy" from "neutral" and its price target to $646 from $428 -- and Barclays, which raised its rating to "overweight" from "equal weight" and its target price to $700 from $412. Heading into today's trading, the stock was already boasting an impressive 55.4% year-to-date lead to trade at $482.18 -- and the options market was pricing in a much slimmer post-earnings move. Regardless, option traders should be pleased with this projected move. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Amazon.com, Inc.'s 10-day call/put volume ratio of 1.21 ranks in the 65th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual clip.

  • SBUX is also set to explore uncharted territory today, after the firm unveiled better-than-expected fiscal third-quarter earnings, as well as a new buyback program. As we suspected earlier this month, a bevy of brokerage firms boosted their price targets on SBUX, including Wedbush (to $70), Guggenheim (to $68), and Barclays (to $54), with the latter remarking it was "among the strongest and most remarkable quarters" for the company. Specifically, after closing last night at $56.56 -- its highest settlement to date -- the shares are up 5.5% ahead of the bell. Should Starbucks Corporation extend this momentum, a mass exodus of option bears could help fuel the stock's fire. The security's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.67 ranks higher than 75% of all similar readings taken in the past year.

  • Not to be left out, JNPR is eyeing an 8% pop out of the gate -- and a move to levels not seen since January 2014 -- thanks to a strong showing in the earnings confessional, a fresh share repurchase plan, and a round of upbeat analyst notes. MKM Partners, for example, raised its rating to "neutral" from "sell" and its fair value to $28 from $22. Cantor, meanwhile, upped its price target to $36 from $31, territory not seen in more than four years. Another round of upgrades and/or price-target hikes could come down the pike, should Juniper Networks, Inc. continue to add to its nearly 19% 2015 gain. Roughly 64% of analysts maintain a "hold" or worse suggestion, while the average 12-month price target of $26.02 stands at a discount to Thursday's close at $26.49.
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