Analyst Upgrades: American Airlines, Monster, and Xerox

Analysts upwardly revised their ratings and price targets on American Airlines Group Inc (AAL), Monster Beverage Corporation (MNST), and Xerox Corp (XRX)

Feb 1, 2016 at 9:55 AM
facebook twitter linkedin

Analysts are weighing in on aviation expert American Airlines Group Inc (NASDAQ:AAL), energy drink peddler Monster Beverage Corporation (NASDAQ:MNST), and business support firm Xerox Corp (NYSE:XRX). Here's a quick roundup of today's bullish brokerage notes on AAL, MNST, and XRX.

  • Cowen and Company raised its rating on AAL to "outperform," and its price target to $48, sending the shares 1.1% higher at $39.42. This is pretty typical of the brokerage crowd, which has handed out eight "strong buy" ratings on the stock, versus five "holds" and not a single "sell." Plus, the average 12-month price target of $53.62 stands at a 36% premium to current trading levels. However, the charts paint a less rosy picture. Since hitting a record high of $56.05 last March, American Airlines Group Inc has plummeted nearly 30%. Should the shares continue to run into headwinds -- perhaps in the form of their 20-day moving average, which has acted as resistance all year -- a reversal in analyst sentiment could lead to additional turbulence.

  • MNST saw its rating lifted to "outperform" from "market perform" at Wells Fargo, just a trading day after perpetual naysayer Citron Research called the stock's valuation "crazy." As such, the shares are up 0.6% at $135.89, bringing their year-over-year advance to 15.6%. In the options pits, traders have been extremely skeptical toward Monster Beverage Corporation. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio stands at an annual high of 5.62. Should these bears begin to hit the exits, it could add fuel to MNST's technical fire.

  • Barclays raised its price target on XRX to $10 from $9. However, Morgan Stanley lowered its rating to "equal weight" from "overweight" and trimmed its price target to $12 from $13.50. To make matters worse, BMO and Brean Capital also cut their price targets, to $10.50 and $11, respectively. This is understandable, given that Xerox Corp is down 30% year-over-year at $9.37, and as recently as Jan. 20, hit a two-year low of $8.48. Meanwhile, opinions are pretty bearish among traders at the ISE, CBOE, and PHLX, where nearly two puts have been bought to open for each call in recent weeks. Specifically, XRX's 10-day put/call volume ratio of 1.91 outstrips 94% of all other readings from the prior year.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners