Analyst Upgrades: The Coca-Cola Co, Lumentum Holdings Inc, and NXP Semiconductors NV

Analysts upwardly revised their ratings and price targets on The Coca-Cola Co (KO), Lumentum Holdings Inc (LITE), and NXP Semiconductors NV (NXPI)

Feb 5, 2016 at 9:49 AM
facebook twitter linkedin

Analysts are weighing in on soda seller The Coca-Cola Co (NYSE:KO), optical products specialist Lumentum Holdings Inc (NASDAQ:LITE), and chipmaker NXP Semiconductors NV (NASDAQ:NXPI). Here's a quick roundup of today's bullish brokerage notes on KO, LITE, and NXPI.

  • KO, which will report earnings next Tuesday morning, saw its rating bumped to "neutral" from "negative" at Susquehanna -- which also upwardly revised its price target to $40 from $33. In early trading, the shares are up 0.4% at $42.70, but they've advanced just 3% on a year-over-year basis, despite a recent lift from their 320-day moving average. In the options pits, short-term speculators are more call-skewed than usual, according to The Coca-Cola Co's Schaeffer's put/call open interest ratio (SOIR) of 0.54. Not only does this ratio indicate calls nearly double puts among options expiring in the next three months, it also rests below 92% of all other readings taken in the past year.

  • LITE has surged 7.5% to trade at $23.87, thanks to a strong quarterly report and upbeat guidance, as well as a round of bullish brokerage notes. In fact, no fewer than seven analysts upwardly revised their price targets on the stock, with B. Riley setting the bar the highest at $31.50 -- unexplored territory for the shares. Lumentum Holdings Inc has been a powerhouse since bottoming at a record low of $13.97 in mid-October, adding about 71%. However, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been placing bearish bets at a faster clip than bullish in recent weeks. Specifically, LITE's 10-day put/call volume ratio checks in at 1.13, up from 0.60 just two weeks ago.

  • Fresh off yesterday's earnings rally, NXPI has received price-target hikes at Jefferies, J.P. Morgan Securities, and Topeka Capital. On the other hand, both Raymond James and Morgan Stanley cut their price targets on the stock. In early trading, NXP Semiconductors NV is off 0.4% at $76.00 -- typical for a stock that's shed one-third of its value since hitting a record high of $114 in early June. Amid this downtrend, option traders have been buying to open puts over calls at a near-extreme speed in recent months. NXPI's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.61 outstrips 99% of all comparable readings recorded in the last 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! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners