Analyst Upgrades: American Express Company, Kinder Morgan Inc, and Mattel, Inc.

Analysts upwardly revised their ratings and price targets on American Express Company (AXP), Kinder Morgan Inc (KMI), and Mattel, Inc. (MAT)

by Alex Eppstein

Published on Oct 20, 2016 at 9:35 AM

Analysts are weighing in on credit card concern American Express Company (NYSE:AXP), energy infrastructure stock Kinder Morgan Inc (NYSE:KMI), and toy titan Mattel, Inc. (NASDAQ:MAT). Here's a quick roundup of today's bullish brokerage notes on AXP, KMI, and MAT.

  • AXP has gapped 6.7% higher out of the gate at $65.33, on the heels of an earnings blowout and upwardly revised guidance. Adding fuel to the fire, BofA-Merrill Lynch upgraded its rating to "neutral," while BMO Capital and Goldman Sachs raised their price targets. That said, American Express Company is still down nearly 15% on a year-over-year basis, perhaps explaining why short-term options traders have been so put-focused. Specifically, AXP's Schaeffer's put/call open interest ratio (SOIR) of 1.22 ranks just 9 percentage points from a 12-month high.
  • KMI is up 2% at $21.13, as a surprise quarterly loss takes a back seat to reassuring words from management, which said the company won't need outside capital to fund its growth projects for the "foreseeable future beyond 2016." Wall Street has responded favorably, as well, with Stifel, Wolfe Research, and Credit Suisse each boosting its rating to the equivalent of a "buy." The latter, along with SunTrust Robinson, also lifted its price target. Thanks to today's gains, Kinder Morgan Inc has extended its 2016 lead to a brow-raising 41.6%. This should be a boon to option bulls, who have bought to open four times as many calls as puts during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).
  • Following in the footsteps of this sector peer, MAT has added 5.7% to trade at $32.36, after a strong earnings report and a price-target hike to $41 from $38 at B. Riley. Year-to-date, the shares have now advanced 19%, potentially turning up the heat on short sellers. After all, one-tenth of Mattel, Inc.'s total float is sold short, and at the stock's average daily trading levels, it would take roughly two weeks to cover these bearish bets.
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