Analyst Upgrades: Wal-Mart Stores, Inc., Micron Technology, Inc., and Visa Inc

Analysts upwardly revised their ratings and price targets on Wal-Mart Stores, Inc. (WMT), Micron Technology, Inc. (MU), and Visa Inc (V)

by Celeste Taylor

Published on Jun 6, 2016 at 10:28 AM

Analysts are weighing in on retailer Wal-Mart Stores, Inc. (NYSE:WMT), semiconductor stock Micron Technology, Inc. (NASDAQ:MU), and credit card concern Visa Inc (NYSE:V). Here's a quick roundup of today's bullish brokerage notes on WMT, MU, and V.

  • WMT is 0.6% higher at $71.26 -- in 2016-high territory -- following a Jefferies upgrade from "neutral" to "buy," and price-target hike to $82 from $60. In fact, analyst Daniel Binder listed 10 reasons to buy WMT, opining that the "battleship is starting to turn," and that "expectations for a sustained turnaround are still not that high and we are in the early innings, so there is room for shares to move higher." Wal-Mart Stores, Inc. shares have risen 16% since the beginning of 2016, as a solid earnings report helped the blue chip defy a broader retail-sector slump. Nevertheless, short interest in the stock has risen 29.9% over the last two reporting periods, and WMT's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 1.7 sits in the 90th percentile of annual readings, suggesting a strong bearish bias among option buyers. A mass exodus of bears could help WMT extend its upward momentum.
  •  
  • MU is up 0.6% at $12.94, after a Goldman Sachs price-target hike to $13 from $10. The semiconductor stock has been on a tear lately, up over 25% within the last month, thanks to an improved outlook on demand for MU's DRAM chips. MU is now approaching its 200-day moving average, which has contained shares since February 2015. Micron Technology, Inc. has outperformed the greater S&P 500 Index (SPX) by 26 percentage points over the last 20 sessions , although with a 14-day Relative Strength Index (RSI) of 73, the stock is hovering in "overbought" territory, suggesting the possibility of a short-term breather in the near future.

  • is trading at $80.43, up 0.6%, after J.P. Morgan Securities resumed coverage of the shares with an "overweight" rating and $88 price target. V has jumped over 4% within the past month, and is within a chip-shot of its all-time high of $81.73, tagged in mid-April. Visa Inc option bulls have been active, with V's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.2 sitting in the 82nd percentile of its annual range. Near-term options are a relative bargain at the moment, with V's current Schaeffer's Volatility Index (SVI) of 15% sitting at its lowest level in the past 12 months, suggesting traders are pricing in historically low volatility expectations.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....
J M Smucker Stock Jammed by Ugly Sales Outlook
J M Smucker's fourth-quarter profits and revenue were better than Wall Street expected
NIO Rises on Record-Breaking Deliveries
Nio stock hit a record high in vehicle deliveries for May
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.