Analyst Upgrades: Groupon Inc, VMware, Inc., and Western Digital Corp

Analysts upwardly revised their ratings and price targets on Groupon Inc (GRPN), VMware, Inc. (VMW), and Western Digital Corp (WDC)

Oct 27, 2016 at 9:26 AM
facebook X logo linkedin


Analysts are weighing in on deals distributor Groupon Inc (NASDAQ:GRPN), virtualization stock VMware, Inc. (NYSE:VMW), and storage device maker Western Digital Corp (NASDAQ:WDC). Here's a quick roundup of today's bullish brokerage notes for GRPN, VMW, and WDC.

  • Despite posting in-line earnings and receiving a price-target hike to $4.80 from $4.40 at Goldman Sachs, GRPN is down 7.2% pre-market. Meanwhile, the company announced it will acquire one-time rival LivingSocial. Last night, Groupon Inc settled at $5.26, and on a 71% year-to-date lead. Yet, short sellers haven't shied away from the outperforming stock. Eleven percent of GRPN's total float is sold short, which would take two weeks to cover, based on the equity's typical trading levels. If today's losses materialize, the collective spirit of these bearish traders could get a lift. At the same time, bullish options traders could be left kicking rocks.
  • VMW reported better-than-expected earnings last night, with CEO Pat Gelsinger describing the quarterly performance as "very good." Wall Street seems to agree. Citigroup upped its opinion on VMware, Inc.  to "buy" from "neutral," and was one of at least 10 brokerage firms to hike its price target. Heading into the session, the stock was up 29.6% year-to-date at $73.31, and based on their 5% gain in electronic trading, the shares could make a run at a new annual high today. Additional upgrades could add even more fuel to VMW's fire. Of the 27 analysts tracking the stock, 15 have doled out either a "hold" or a "sell" rating.
  • WDC blew past its consensus earnings estimate during last night's trip to the confessional. As a result, BofA-Merrill Lynch upped its opinion to "neutral" from "underperform," while no fewer than 12 other analysts raised their price targets. Ahead of the open, Western Digital Corp is pointed 4.4% higher, relative to Wednesday's close at $56.52 -- and, longer term, the shares have been on fire since bottoming around $35 in mid-May. Not surprisingly, options traders have shown a distinct preference for long calls over puts. WDC's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 3.03, ranking in the bullishly skewed 86th annual percentile.
Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI