Analyst Upgrades: Palo Alto Networks Inc, TerraForm Power Inc, and BlackRock, Inc.

Analysts upwardly revised their ratings and price targets on Palo Alto Networks Inc (NYSE:PANW), TerraForm Power Inc (NASDAQ:TERP), and BlackRock, Inc. (NYSE:BLK)

by Josh Selway

Published on Sep 10, 2015 at 9:06 AM

Analysts are weighing in on cybersecurity stock Palo Alto Networks Inc (NYSE:PANW), alternative energy concern TerraForm Power Inc (NASDAQ:TERP)and investment firm BlackRock, Inc. (NYSE:BLK). Here's a quick roundup of today's bullish brokerage notes on PANW, TERP, and BLK.

  • A better-than-expected fiscal fourth-quarter earnings report, strong current-quarter sales outlook, and subsequent round of bullish analyst notes has PANW 4.4% higher ahead of the open -- slightly less than the post-earnings move the options market was pricing in. On a closer look, no fewer than 13 brokerage firms raised their price targets on the stock, with JMP Securities setting the highest mark at $220 -- a 33% premium to last night's close at $165.17, and in record-high territory. Guggenheim, meanwhile, boosted its target price to $10 from $210, saying, "We remain confident that Palo Alto can continue taking share in its core firewall market while growing subscription attach rates." There was already a bullish bias toward Palo Alto Networks Inc on the Street, with 20 of 25 analysts calling the stock a "buy" or better. 

  • TERP is positioned 2.5% lower in electronic trading, despite Janney initiating coverage on the security with a "buy" rating, and a fair value of $34. This bullish bias is directed toward a stock that's underperformed the broader S&P 500 Index (SPX) by 41 percentage points during the past 40 sessions. The shares settled at $21.29 on Wednesday, with recent rebound attempts thwarted by their overhead 20-day moving average. Short sellers have taken note. Short interest on TerraForm Power Inc skyrocketed by over 94% during the two most recent reporting periods, and now accounts for a healthy 7.4% of the stock's available float.

  • Since hitting an all-time high of $382.84 in mid-February, BLK has fallen 22.5% to $296.77. This dreary technical performance has led to a put-skewed approach from the stock's short-term options traders, with BlackRock, Inc.'s Schaeffer's put/call open interest ratio (SOIR) checking in at 2.96 -- just 9 percentage points from an annual high. This morning, though, the stock is prepared to open slightly higher, thanks to an upgrade to "outperform" from "neutral" at Credit Suisse, which joins nine other brokerage firms that say the shares are the equivalent of a "buy" or better. 

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