Analyst Upgrades: Tesla Motors Inc, Oclaro, Inc., and Electronic Arts Inc.

Analysts upwardly revised their ratings and price targets on Tesla Motors Inc (NASDAQ:TSLA), Oclaro, Inc. (NASDAQ:OCLR), and Electronic Arts Inc. (NASDAQ:EA)

Josh Selway
Nov 2, 2016 at 9:23 AM
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Analysts are weighing in on electric car maker Tesla Motors Inc (NASDAQ:TSLA), tech stock Oclaro, Inc. (NASDAQ:OCLR), and video game expert Electronic Arts Inc. (NASDAQ:EA) . Here's a quick roundup of today's bullish brokerage notes for TSLA, OCLR, and EA.

  • TSLA is edging lower ahead of the open, even after Baird reiterated its "outperform" assessment and its $338 price target -- a 77% premium to last night's close of $190.79, and in all-time-high territory. The brokerage firm believes shareholders will approve Tesla Motors Inc's proposed merger with SolarCity Corp (NASDAQ:SCTY), which could benefit Tesla in a number of ways. This upbeat note came after Tesla said it expects the deal to add at least $500 million to its balance sheet over the next three years. The stock still has to win over plenty more analysts, though, since just three of 17 recommending buying it. The generally bearish outlook among brokerage firms may have something to do with the fact that TSLA is down 20.5% year-to-date.
  • OCLR is set to add 11% when the market opens, after the company topped Wall Street's consensus earnings estimate. In response, no fewer than six brokerage firms raised their price targets, with B. Riley setting the highest mark at $13.50. This represents territory Oclaro, Inc. hasn't seen since early 2011, but considering the stock has surged 132% in the past 12 months to trade at $7.34, an extended move higher doesn't seem too far-fetched. Call buyers would certainly like to see the stock continue to gain, since roughly four calls have been bought to open for every put during the past 20 sessions at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).
  • EA is also eyeing a post-earnings rally, after the video game maker posted strong quarterly results and raised its full-year outlook. So far, only Barclays has weighed in on EA -- which is up 3% ahead of the bell -- raising its price target to $94 from $88, representing all-time-high territory. Year-to-date, Electronic Arts Inc. is up 13% at $77.84, and hit a record high of $86.07 early last month. Considering all this, short sellers may be questioning their positions. There are nearly 20 million EA shares currently sold short, and it would take eight sessions for bears to buy back these positions, based on the stock's average daily volumes. 
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