Analyst Update: Ambarella Inc, BlackBerry Ltd, and Allegheny Technologies Incorporated

Analysts revised their ratings and price targets on Ambarella Inc (NASDAQ:AMBA), BlackBerry Ltd (NASDAQ:BBRY), and Allegheny Technologies Incorporated (NYSE:ATI)

Aug 29, 2016 at 1:49 PM
facebook twitter linkedin


Analysts are weighing in on tech stock Ambarella Inc (NASDAQ:AMBA), smartphone maker BlackBerry Ltd (NASDAQ:BBRY), and metal producer Allegheny Technologies Incorporated (NYSE:ATI). Here's a quick roundup of today's brokerage notes on AMBA, BBRY, and ATI.

  • Ahead of AMBA's turn in the earnings confessional Thursday night, the stock saw its price target boosted to $85 at Craig-Hallum. This upbeat outlook -- as well as an analyst-induced pop for AMBA customer GoPro Inc (NASDAQ:GPRO) -- has the stock up 2.7% at $70.82. This positive price action is just more of the same for the shares of Ambarella Inc, which have doubled since their mid-May lows near $35.30. Should the security extend this momentum -- possibly in the wake of another strong earnings reaction -- short sellers could be encouraged to cover their bearish bets. Currently 22% of AMBA's float is sold short, representing nearly nine sessions' worth of pent-up buying demand, at the stock's average pace of trading.
  • J.P. Morgan Securities boosted its price target on BBRY to $8 from $7, roughly in line with the equity's current price of $7.94. Technically, the shares are up 27.4% from their year-to-date low at $6.23 -- hit during the late-June broad-market sell-off. More recently, BBRY seems to have found a foothold in the $7.85-$7.90 region, which served as resistance in the first half of this month. While analysts been growing increasingly optimistic toward BBRY of late, options traders have shown a preference for long calls over puts in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BlackBerry Ltd's 50-day call/put volume ratio of 6.24 ranks in the 80th annual percentile.
  • Deutsche Bank raised its rating on ATI to "buy" from "hold" and its price target to $20 from $15, with the brokerage firm waxing optimistic over the company's cost-cutting measures. At last check, the stock was up 10.1% at $18.33. However, while the equity is within a chip-shot of taking out its annual high of $19.49 from last August, it is running into familiar resistance in the $18.40-$18.50 neighborhood, which has resisted Allegheny Technologies Incorporated's advances for most of the past 12 months. Today's bull gap is likely catching skeptics off guard, too. Not only is 19.1% of the stock's float sold short, but its 10-day put/call volume ratio of 3.96 at the ISE, CBOE, and PHLX ranks just 8 percentage points from a 52-week peak.
Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners