Analyst Upgrades: AT&T Inc., Cree, Inc., and Fortinet Inc

Analysts upwardly revised their ratings and price targets on AT&T Inc. (T), Cree, Inc. (CREE), and Fortinet Inc (FTNT)

Apr 27, 2016 at 10:01 AM
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Analysts are weighing in on telecommunications stock AT&T Inc. (NYSE:T), lighting solutions specialist Cree, Inc. (NASDAQ:CREE), and cybersecurity stock Fortinet Inc (NASDAQ:FTNT). Here's a quick roundup of today's bullish brokerage notes on T, CREE, and FTNT.
 
  • T reported better-than-expected first-quarter earnings, leading Cowen and Company and Raymond James to increase their price targets on the stock, to $44 and $41, respectively. The shares are 0.5% lower at $37.91 this morning, however, as AT&T Inc. continues to pull back from its seven-year high of $39.72, seen in late March. What's more, the stock is now on pace to close below its 60-day moving average for the first time since early January. Elsewhere, short sellers have continued backing off, with short interest falling by more than 17% during the last two reporting periods.
  • CREE beat predictions for its fiscal third-quarter earnings, boosting the shares 5.8% to $26.02. Cowen and Company raised its price target on the stock to $25 from $23, while Canaccord Genuity cut its target by $1 to $19. Cree, Inc. had been stuck in the $24-$25 range since early April, following a dreary current-quarter forecast. But today's price action could spook some near-term traders, who have been remarkably put-heavy of late. Cree currently has a Schaeffer's put/call open interest ratio (SOIR) of 1.26 -- in the 97th percentile of its annual range -- meaning puts outnumber calls by an unusually high margin among options expiring in three months or less.
  • FTNT is 6% higher at $32.80, after reporting strong first-quarter earnings and receiving price-target hikes from at least nine brokerage firms. Goldman Sachs set the loftiest target at $42 -- a level the shares haven't seen since before their post-earnings bear gap in October. Fortinet Inc has been marching steadily higher on the charts since February, thanks to support from its 30-day moving average. And options traders have been largely optimistic. The equity's 50-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than three-fourths of the past year's readings, at 1.43.
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