Analyst Upgrades: Netflix, Inc., Micron Technology, Inc., and Wells Fargo & Co

Analysts upwardly revised their ratings on Netflix, Inc. (NASDAQ:NFLX), Micron Technology, Inc. (NASDAQ:MU), and Wells Fargo & Co (NYSE:WFC)

Oct 9, 2015 at 9:13 AM
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Analysts are weighing in on streaming giant Netflix, Inc. (NASDAQ:NFLX), semiconductor concern Micron Technology, Inc. (NASDAQ:MU), and financial firm Wells Fargo & Co (NYSE:WFC). Here's a quick roundup of today's bullish brokerage notes on NFLX, MU, and WFC.

  • BMO initiated coverage on NFLX with a "market perform" rating and a $115 price target, while Pacific Crest boosted its target price to $140 from $122 -- never-before-seen territory -- after the company unveiled a new pricing plan yesterday. The news was enough to spark a sharp reversal in the shares, with Netflix, Inc. ending the session 6.3% higher at $114.93. This is just more of the same for a stock that's up 135% on the year, and another round of bullish brokerage notes -- perhaps in the wake of next week's quarterly earnings announcement -- could translate into a fresh burst of buying power. Eleven analysts still maintain a "hold" or "strong sell" recommendation, while the average 12-month price target of $119.30 is just a chip-shot away from current trading levels.

  • MU saw its price target raised to $18 from $16 at Mizuho, although this still represents a discount to last night's close at $18.72. Technically speaking, it's been a tough year for Micron Technology, Inc., which has shed nearly half its value. On the sentiment front, skepticism has been growing toward the long-term laggard. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MU's 10-day put/call volume ratio of 0.60 ranks in the 82nd annual percentile. Elsewhere, short interest jumped 3.6% in the most recent reporting period, and now accounts for a healthy 5.9% of the stock's available float.

  • J.P. Morgan Securities raised its outlook on WFC to "overweight," sending the shares 1.2% higher ahead of the bell. Longer term, the stock is down 4.2% in 2015, and settled Thursday at $52.54 -- just below its 40-day moving average. Short-term speculators, meanwhile, have shown a distinct preference for calls over puts, per WFC's Schaeffer's put/call open interest ratio (SOIR) of 0.44. Not only does this show that call open interest more than doubles put open interest among options set to expire in three months, it ranks lower than 97% of all similar readings taken in the past year. Simply stated, speculative traders have rarely been as call-heavy. On the fundamental front, Wells Fargo & Co is slated to unveil third-quarter earnings ahead of next Wednesday's open.
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