Analyst Upgrades: Facebook Inc, Paypal Holdings Inc, and Kinder Morgan Inc

Analysts upwardly revised their ratings and price targets on Facebook Inc (NASDAQ:FB), Paypal Holdings Inc (NASDAQ:PYPL), and Kinder Morgan Inc (NYSE:KMI)

Jan 28, 2016 at 9:29 AM
facebook twitter linkedin

Analysts are weighing in on social network Facebook Inc (NASDAQ:FB), payment processor Paypal Holdings Inc (NASDAQ:PYPL), and oil-and-gas issue Kinder Morgan Inc (NYSE:KMI). Here's a quick roundup of today's bullish brokerage notes on FB, PYPL, and KMI.

  • FB is ready to rip higher out of the gate -- up 14% in electronic trading -- and could possibly take aim at its Nov. 5 all-time high of $110.65. Helping boost the shares are the firm's stellar turn in the earnings confessional and subsequent round of upbeat analyst attention. In fact, the stock has received no fewer than 12 price-target hikes, including one from Jefferies to $145 from $135, with the brokerage firm citing Facebook Inc's "remarkable ad platform." Today's projected price move comes at an opportune time for the shares, which have struggled so far this year.  It could also shake things up in the equity's options pits, considering FB's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.56 ranks in the bearishly skewed 89th annual percentile. On Wednesday, FB closed at $94.45.

  • In its second turn in the earnings confessional as an independent company, PYPL unveiled stronger-than-expected results and a $2 billion stock buyback program. Analysts were quick to weigh in -- and once again divided -- with Wedbush upping the shares to "outperform" from "neutral," and Piper Jaffray boosting its price target to $33 from $30. On the other hand, at least five brokerages lowered their target prices for Paypal Holdings Inc, including Credit Suisse to $39 from $43. Nevertheless, the shares are up 6% ahead of the bell, after settling last night at $31.59. The stock has slightly underperformed the S&P 500 Index (SPX) in recent months, and option traders are betting on additional struggles. Nearly two puts have been bought to open for every call during the past two weeks at the ISE, CBOE, and PHLX. 

  • KMI has been staging a monstrous comeback in recent weeks, and today, the shares are up 7% in pre-market trading. Stoking this fresh batch of bullish flames is an upgrade to "outperform" from "neutral" and price-target hike to $20 from $18 at Credit Suisse, which waxed optimistic on the company's big projects and limited exposure to credit risk, among other things. Stifel Nicolaus also chimed in, boosting its outlook to "buy" from "hold." This optimistic outlook isn't shared by option traders, however, as evidenced by KMI's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.91 -- in the 67th annual percentile. Last night, Kinder Morgan Inc settled at $14.22, 4.7% lower on the year.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1