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Analyst Upgrades: Caterpillar, Lipocine, Seagate Technology

Analysts upwardly revised their ratings and price targets on Caterpillar Inc. (CAT), Lipocine Inc (LPCN), and Seagate Technology PLC (STX)

Oct 11, 2016 at 9:15 AM
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Analysts are weighing in on heavy machinery maker Caterpillar Inc. (NYSE:CAT), drugmaker Lipocine Inc (NASDAQ:LPCN), and data storage stock Seagate Technology PLC (NASDAQ:STX). Here's a quick roundup of today's bullish brokerage notes on CAT, LPCN, and STX.

  • Goldman Sachs boosted its rating on CAT to "buy" and its price target to $112 -- representing four-year-high territory. Likewise, Jefferies upped its target price to $80. The positive revisions are well-deserved, considering Caterpillar Inc. has run nearly 30% higher year-to-date at $88.22, and touched an annual peak of $89.87 last week. Plus, ahead of the open, the shares are pointed another 1% higher. There's plenty of potential for CAT to benefit from additional upgrades and bullish initiations, too. Heading into today, 13 of 15 analysts have handed the stock either a "hold" or a "strong sell" assessment.

  • LPCN is sitting 6.7% higher in electronic trading, after Canaccord Genuity raised its price target to $15 from $6 -- nearly tripling yesterday's close at $5.54. The upward revision comes just a couple days after the stock gapped higher on another round of positive brokerage attention, though the shares have a long way to go to close their late-June bear gap. Lipocine Inc could get a proverbial shot in the arm if short sellers keep covering their positions. During the most recent reporting period, short interest fell 8.1%, but more than 15% of the stock's total float is still sold short. At LPCN's average trading rate, it would take over 18 sessions to buy back these bearish bets.

  • STX raised its fiscal first-quarter revenue guidance this morning. Plus, J.P. Morgan Securities lifted its opinion to "neutral" from "underweight" and its price target to $38 from $20, while Jefferies upped its price target to $44. Despite these positive developments, Seagate Technology PLC is down 0.8% in pre-market trading. Perhaps the shares are preparing to take a breather, after trekking higher from their mid-May lows below $18.50. In fact, the stock has more than doubled since bottoming, settling Monday at $37.97. Short-term options traders remain unconvinced, though. STX's Schaeffer's put/call open interest ratio (SOIR) checks in at 1.24, in the put-skewed 81st percentile of its annual range.
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