Analyst Upgrades: Facebook Inc, Freeport-McMoRan Inc, and Netflix, Inc.

Analysts upwardly revised their ratings on Facebook Inc (NASDAQ:FB), Freeport-McMoRan Inc (NYSE:FCX), and Netflix, Inc. (NASDAQ:NFLX)

Josh Selway
Nov 21, 2016 at 9:28 AM
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Analysts are weighing in on social media stock Facebook Inc (NASDAQ:FB), mining firm Freeport-McMoRan Inc (NYSE:FCX), and streaming giant Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's bullish brokerage notes on FB, FCX, and NFLX.

  • FB is set to add over 1% this morning, after Mizuho reiterated its "outperform" rating and $146 price target -- an almost 25% premium to Friday's close of $117.02. The brokerage firm recommended buying Facebook Inc on the recent pullback, saying the company's fundamental outlook remains in tact and "valuation is compelling." Speaking of the recent pullback, FB shares have given back 12.3% since their Oct. 25 all-time high of $133.50, while options traders have shown an unusual interest in long put options in recent months. Specifically, the stock's 50-day put/call volume ratio of 0.66 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) tops 96% of the past year's readings. In other news, the company on Friday announced a $6 billion stock buyback, and over the weekend, unveiled plans to add 500 employees in the U.K.

  • Cowen and Company upped its price target on FCX to $20 from $15, reiterating its "outperform" assessment in the process, saying the company is once again the "go-to copper investment vehicle." At $13.73, Freeport-McMoRan Inc has more than doubled in value year-to-date, and now seems to be consolidating above former resistance at the $13.50 level. If the shares keep up this blistering pace -- they're on pace to open 3.7% higher, and could hit a new annual peak -- additional bullish attention could add fuel to the fire. For instance, just three of the 14 brokerage firms with coverage on FCX recommend buying the stock. 
  • NFLX has gained 1.2% in electronic trading, after Brean Capital initiated coverage with a "buy" rating and $145 price target. Not only does this target equate to nearly 26% upside from the stock's Friday close of $115.21, but it sits in all-time-high territory. Netflix, Inc. shares currently sit just above their 2016 breakeven point, and near-term options traders have displayed a preference for calls over puts. This is according to NFLX's gamma-weight Schaeffer's put/call open interest ratio (SOIR) of 0.62, which tells us call open interest handily outweighs put open interest among near-the-money options expiring in three months or less. 
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