Analyst Upgrades: Yelp Inc, Spirit Airlines Incorporated, and MGM Resorts International

Analysts upwardly revised their ratings and price targets on Yelp Inc (YELP), Spirit Airlines Incorporated (SAVE), and MGM Resorts International (MGM)

Jun 20, 2016 at 10:01 AM
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Analysts are weighing in on online review site Yelp Inc (NYSE:YELP), discount airline Spirit Airlines Incorporated (NASDAQ:SAVE), and casino stock MGM Resorts International (NYSE:MGM)Here's a quick roundup of today's bullish brokerage notes on YELP, SAVE, and MGM.

  • YELP is up 5.3% at $28.34, after Deutsche Bank upgraded to stock's rating to "buy" from "hold," and raised its price target to $33 from $26. The firm cited the company's "considerable upside ... if Yelp can continue to build on improving salesforce efficiency and sustain first-quarter levels of ad fulfillment." Yet, the stock has given up 37% year-over-year, and recently ran into trouble at its year-to-date breakeven mark, around the $28 level. Options traders have taken an unusually optimistic stance of late. Specifically, YELP's 50-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 3.15 -- higher than 79% of all readings in a past year. An unwinding of this bullish sentiment in light of Yelp Inc's weak long-term technical performance could serve as a headwind for the shares going forward.
  • SAVE received an upgrade to "outperform" from "neutral" at Credit Suisse, which also increased its price target on the stock to $55 from $44 -- a level the shares haven't seen since last August. The stock up is 5.2% at $44.70 on the news, bringing its year-to-date gain to 12.2%, which could have some option bears sweating. At the ISE, CBOE, and PHLX, Spirit Airlines Incorporated has a 10-day put/call volume ratio of 1.19 -- in the 79th percentile of its annual range. Short interest has been soaring lately, too, up 38% during the two most recent reporting periods, and now representing 7.5% of SAVE's total float.

  • MGM is 1.5% higher at $24.99, following a price-target hike to $31 from $27 at Susquehanna -- in seven-year-high territory. The stock has been marching higher since February, and analysts are almost entirely in the stock's bullish corner. But near-term options traders have been remarkably put-heavy of late. MGM Resorts International currently holds a Schaeffer's put/call open interest ratio (SOIR) of 1.09 -- higher than 98% of all readings in the past 12 months -- meaning puts are uncommonly popular among options expiring in three months of less.
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