Analyst Upgrades: Chevron, Alphabet, and Guidewire

Analysts upwardly revised their ratings on Chevron Corporation (CVX), Alphabet Inc (GOOGL), and Guidewire Software Inc (GWRE)

Dec 2, 2015 at 9:02 AM
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Analysts are weighing in on energy bigwig Chevron Corporation (NYSE:CVX), tech titan Alphabet Inc (NASDAQ:GOOGL), and insurance technology specialist Guidewire Software Inc (NYSE:GWRE). Here's a quick roundup of today's bullish brokerage notes on CVX, GOOGL, and GWRE.

  • CVX saw its rating bumped to "buy" from "neutral," and its price target raised to $110 from $95, at Citigroup, which cited Chevron's strong balance sheet. Ahead of the bell, though, the stock is only slightly higher after closing at $92.48 yesterday. It's been a phenomenal quarter for Chevron Corporation, which has soared over 17% -- but longer term, the shares remain at a 17.6% year-to-date deficit, and saw an early November rally lose steam around the 200-day moving average. Option traders have been betting on upside for CVX in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has amassed a 50-day call/put volume ratio of 1.24 -- ranking near the top quartile of its annual range.
  • GOOGL's price target was lifted to $915 from $840 at Evercore, signaling the brokerage firm's expectations for a move into all-time-high territory. Such bullish expectations aren't all that surprising, given that the stock has rocketed nearly 48% higher in 2015, and just yesterday notched a record peak of $785 before closing at $783.79. In fact, plenty of analysts are on Alphabet Inc's bandwagon. Specifically, 31 of 33 brokerages rate the shares a "buy" or better, with not a single "sell" recommendation in sight. However, short-term traders have shown a distinct preference for GOOGL puts over calls. The equity's Schaeffer's put/call open interest ratio (SOIR) rests at an annual high of 1.11.
  • GWRE, which is scheduled to hold its annual shareholders meeting tomorrow, is on the receiving end of positive analyst attention after reporting better-than-expected quarterly results and offering upbeat full-year guidance. Specifically, Pacific Crest, J.P. Morgan Securities, Citigroup, and Deutsche Bank each bumped up their price targets on the stock. Ahead of the open, Guidewire Software Inc is up almost 5% -- putting it on pace to topple its late-July record peak of $60.86 -- after settling at $60.55 on Tuesday. There's plenty of sideline cash available to fuel gains, too. GWRE's short-interest ratio of 11.80 indicates it would take close to 12 sessions for short sellers to buy back their positions, at the stock's average pace of trading.
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