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Analyst Upgrades: Twilio Inc, Mastercard Inc, and Adobe Systems Incorporated

Analysts upwardly revised their ratings and price targets on cloud stock Twilio Inc (TWLO), credit card company Mastercard Inc (MA), and software stock Adobe Systems Incorporated (ADBE)

Jan 5, 2017 at 10:35 AM
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Analysts are weighing in on cloud stock Twilio Inc (NYSE:TWLO), credit card company Mastercard Inc (NYSE:MA), and software stock Adobe Systems Incorporated (NASDAQ:ADBE). Here's a quick roundup of today's bullish brokerage notes on TWLO, MA, and ADBE.

  • TWLO is up 2.2% at $28.11, after an upgrade to "overweight" from "sector weight" by Pacific Crest, which cited "underappreciated growth potential." Though the Wall Street rookie has tumbled from its September highs, the shares are currently trading near the $29-$30 level, which represents approximately twice TWLO's IPO, and could serve as a launching pad. Despite its recent positive analyst attention, two-thirds of brokerage firms rate the shares a tepid "hold," leaving plenty of room for more upgrades to continue to push the shares even higher.

  • MA is 1.5% higher at $107.78 -- a chip-shot away from a new all-time high -- after an upgrade to "top pick" from "outperform" at RBC, which also hiked its price target to $130 from $115, in uncharted territory. Since touching an all-time high in late October, MA shares have consolidated in the $102-$106 region, but are looking to break north of that range today. Despite MA's long-term technical strength, bearish betting has ramped up in recent weeks, with Mastercard Inc's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sitting just 4 percentage points from an annual peak.

  • ADBE is up 0.6% at $104.80, after BMO initiated coverage with an "outperform" rating and $125 price target -- in record-high territory. ADBE has added more than 47% since hitting an annual low in February, with its few declines halted by the shares' 200-day moving average. In the option pits, near-term traders are still more put-skewed than usual, however, with Adobe Systems Incorporated's Schaeffer's put/call open interest ratio (SOIR) of 0.96 sitting higher than 62% of all other readings from the past 12 months. An unwinding of these pessimistic positions could fuel ADBE's journey even higher.
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