Analyst Upgrades: Cisco, Goldman Sachs, and Paypal

Analysts upwardly revised their ratings on Cisco Systems, Inc. (NASDAQ:CSCO), Goldman Sachs Group Inc (NYSE:GS), and Paypal Holdings Inc (NASDAQ:PYPL)

Karee Venema

Oct 6, 2015 at 9:36 AM

Analysts are weighing in today on blue chips Cisco Systems, Inc. (NASDAQ:CSCO) and Goldman Sachs Group Inc (NYSE:GS), as well as payment processor Paypal Holdings Inc (NASDAQ:PYPL). Here's a quick roundup of today's bullish brokerage notes on CSCO, GS, and PYPL.

Citi initiated coverage on CSCO with a "buy" rating, with the brokerage firm waxing optimistic over the company's growing profit margins. The upbeat outlook may be what has shares of Cisco Systems, Inc. 0.9% higher at $27.10, bringing their year-over-year advance to 10%. More recently, the stock has been hovering in the $25.50-$26 region -- but, thanks to yesterday's broad-market rally that had CSCO settling at $26.85, the security managed its first close north of its 40-day moving average since Aug. 18. Nevertheless, eight out of 24 analysts maintain a "hold" or "strong sell" rating on the security. Should the equity extend its recent rise, a round of upgrades could translate into tailwinds.

Oppenheimer chimed in on a number of financial stocks today, and for GS, this resulted in a price-target hike to $240 from $236. Not only does this represent expected upside of 33% to last night's close at $180.70, but it also sits in territory not charted since November 2007. Longer term, the shares have shed 17.7% since hitting a seven-year peak in late June, but option traders have kept the faith. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Goldman Sachs Group Inc's 10-day call/put volume ratio of 1.94 ranks in the 85th annual percentile. In other words, calls have been bought to open over puts at a faster-than-usual clip. At last check, the stock is off 0.4% at $180.05.

PYPL received mixed messages from the brokerage bunch this morning. William Blair, for example, initiated coverage with an "outperform" rating, while Evercore ISI lowered its price target by $5 to $31. Unlike option traders, most analysts remain optimistic toward the eBay Inc (NASDAQ:EBAY) spinoff. Specifically, 17 brokerages maintain a "buy" or better rating, versus eight that have issued a "hold" or worse. Technically speaking, Paypal Holdings Inc has surrendered 15% since its July 6 open at $38, down 1% this morning at $32.35.

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