Analyst Upgrades: Alphabet Inc, Mattel, Inc., and Netflix, Inc.

Analysts upwardly revised their ratings and price targets on Alphabet Inc (GOOGL), Mattel, Inc. (MAT), and Netflix, Inc. (NFLX)

Feb 2, 2016 at 9:13 AM
facebook twitter linkedin

Analysts are weighing in on tech juggernaut Alphabet Inc (NASDAQ:GOOGL), toy manufacturer Mattel, Inc. (NASDAQ:MAT), and entertainment issue Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's bullish brokerage notes on GOOGL, MAT, and NFLX.

  • GOOGL is red-hot in pre-market trading, following the company's earnings beat. The big win has stoked the bullish flames of the brokerage crowd, with no fewer than 27 analysts handing out price-target hikes. Mizuho's outlook is the most ambitious, as the firm lifted its target on Alphabet Inc to $1,070 from $850 -- uncharted territory for the shares. Speaking of which, the stock is pointed 5.2% higher ahead of the open, putting it on pace to hit a record high out of the gate, following Monday's settlement at $770.77. Option bears may be shaking in their boots. During the past 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GOOGL has racked up a put/call volume ratio of 0.86 -- higher than 94% of similar readings from the previous 12 months.

  • MAT, too, is surging, up 6.5% pre-market on better-than-forecast quarterly results amid strength in its Barbie and Hot Wheels brands. Responding to the upbeat numbers, Stifel upgraded the stock's rating to "buy" from "hold," while four other brokerage firms boosted their price targets. For instance, Goldman Sachs bumped its outlook to $38 from $36, noting, "Strength in brands like Barbie demonstrate that Mattel's IP still have value and with room for growth." Longer term, Mattel, Inc. has been muscling higher since hitting a five-year low of $19.45 in early October, ending last night at $26.76. Should today's gains materialize, bearish bettors could get forced to the exits, creating tailwinds. MAT's 10-day ISE/CBOE/PHLX put/call volume ratio sits at an annual high of 10.90, while 15.7% of its float is sold short -- which would take nearly two weeks to cover, at average daily volumes.

  • Piper Jaffray upped its opinion on NFLX to "overweight" from "neutral," citing the company's "growth story" in international markets -- though the tale recently hit a snag in Indonesia. The bullish note has sent the shares 1.8% higher ahead of the open. Longer term, Netflix, Inc. has rallied more than 44% year-over-year to trade at $94.09, consolidating in recent sessions atop the round $90 area. If the stock can continue its upward trek, a mass exodus among put buyers could create a fresh wave of buying power. Specifically, NFLX's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.93 outstrips 69% of all comparable readings from the past year, hinting at a stronger-than-usual appetite for bearish bets over bullish of late.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!