Analyst Upgrades: Facebook, GM, United States Steel

Analysts upwardly revised their ratings and price targets on Facebook Inc (NASDAQ:FB), General Motors Company (NYSE:GM), and United States Steel Corporation (NYSE:X)

Karee Venema

Sep 19, 2016 at 9:29 AM

Analysts are weighing in on social media stock Facebook Inc (NASDAQ:FB), automaker General Motors Company (NYSE:GM), and steel producer United States Steel Corporation (NYSE:X). Here's a quick roundup of today's bullish brokerage notes on FB, GM, and X.

Citigroup hiked its price target on FB to $158 from $148 -- in uncharted territory -- saying the Street's growth forecasts for Facebook Inc are "potentially conservative." Against this backdrop, shares of FB are up 0.7% in pre-market trading, after closing last week at $129.07. This projected price action is just more of the same for FB, which has surged 35% year-over-year, and hit an analyst-induced record high of $131.98 on Sept. 7. Options traders have been bracing for a pullback, though. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FB's 10-day put/call volume ratio of 0.64 ranks in the elevated 77th annual percentile.

GM is up 2.5% in electronic trading, after Morgan Stanley upgraded the stock to "overweight" from "equal weight" and boosted its price target to $37 from $29 -- a level not seen by GM since March 2015. Specifically, analysts at the firm say they believe "GM´s businesses can remain relevant and profitable for longer than the market thinks." Drilling down, GM has shed 8.9% year-to-date, based on last Friday's settlement at $30.97. Skepticism has been ramping up toward the stock, too. At the ISE, CBOE, and PHLX, GM's 10-day put/call volume ratio of 1.20 rests above 70% of all comparable readings taken in the past year. Separately, GM is currently in talks with Canadian union workers, in hopes of avoiding a walkout of the Unifor members.

KeyBanc raised its rating on X to "sector weight" from "underweight," saying it believes "investors now appear to be more appreciative of risks." At last check, the shares were up 3.3% ahead of the bell. Longer term, X has been steadily declining since topping out at an annual high of $27.64 in late July, down more than 42% at $15.91. On the sentiment front, short-term traders have been more call-skewed than usual toward the stock. United States Steel Corporation's Schaeffer's put/call open interest ratio (SOIR) of 1.07 is docked lower than all other comparable readings taken in the past year.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Follow @Schaeffers

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade. Professional traders have rushed into the market and are making a mint. Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.