Analyst Upgrades: Chipotle, Netflix, Texas Instruments

Analysts upwardly revised their ratings and price targets on Chipotle Mexican Grill, Inc. (CMG), Netflix, Inc. (NFLX), and Texas Instruments Incorporated (TXN)

Jan 14, 2016 at 10:21 AM
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Analysts are weighing in on restaurant concern Chipotle Mexican Grill, Inc. (NYSE:CMG), streaming media giant Netflix, Inc. (NASDAQ:NFLX), and chipmaker Texas Instruments Incorporated (NASDAQ:TXN). Here's a quick roundup of today's bullish brokerage notes on CMG, NFLX, and TXN.

  • CMG is trading 2.2% higher at $437.36, thanks to an upgrade to "buy" at CLSA, as well as a price-target hike to $425 from $415 at Cowen. "Management views recent sales issues as short-term and fixable, and does not see the need to slowdown store development," wrote Cowen, a day after an encouraging presentation from Chipotle executives. On the flip side, CMG was hit with a price-target cut to $465 from $555 at J.P. Morgan Securities. Chipotle Mexican Grill, Inc. has been falling hard since the first news of an E. coli outbreak hit in October, and the shares found a new two-year low of $399.14 on Tuesday, before ticking higher in the subsequent session. Of 26 analysts providing coverage, 18 still rate the stock a "hold" or worse. And short interest has blown up 46% during the last two reporting periods, now accounting for more than 8% of CMG's total available float.
  • Drexel Hamilton initiated coverage on NFLX with a "buy" rating and a $150 price target -- well into never-before-seen territory -- but that couldn't stop the shares from falling 1.2% to $105.25. Netflix, Inc. has been slipping since hitting an all-time high of $133.27 in early December, but could find support in its ascending 10-month moving average. The stock's decline today could be partially attributable to competition in China from a new movie-streaming firm, or perhaps it's just another down day for consumer discretionary stocks. But option traders have been eyeing more highs ahead of earnings next Tuesday, with NFLX's 50-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.35 ranking higher than 89% of all readings in the past year.
  • TXN is 0.8% higher at $50.20,  after scoring a price-target increase to $58 from $54 at Barclays.  Analysts haven't been especially kind to Texas Instruments Incorporated, with 17 of 27 sitting on ratings of "hold" or worse. There is plenty of room for optimism on the options front, too, should TXN resume its longer-term ascent. At the ISE, CBOE, and PHLX, traders have bought to open nearly eight TXN puts for each call over the past two weeks -- a ratio higher than 91% of the past year's comparable readings. 

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