Paypal, VMware, Wynn Resorts Upgraded

Analysts upwardly revised their ratings and price targets on payment processor Paypal Holdings Inc (PYPL), tech stock VMware, Inc. (VMW), and casino operator Wynn Resorts, Limited (WYNN)

Jan 27, 2017 at 10:20 AM
facebook twitter linkedin

Analysts are weighing in on payment processor Paypal Holdings Inc (NASDAQ:PYPL), tech stock VMware, Inc. (NYSE:VMW), and casino operator Wynn Resorts, Limited (NASDAQ:WYNN). Here's a quick look at today's bullish brokerage notes on PYPL, VMW, and WYNN.

Paypal Falls After Forecast

PYPL is down 3.1% at $40.20, after the company offered up a lackluster full-year forecast due to currency headwinds and increased competition. Nevertheless, the stock received a handful of price-target hikes, including one from Goldman Sachs to $50 -- uncharted territory -- while Wedbush Securities said Paypal Holdings Inc remains a "long-term secular growth story." Evercore ISI, meanwhile, lowered its price target by $1 to $45. PYPL shares are still up 17.4% year-over-year, and call buyers have been active in recent weeks. PYPL's 10-day call/put volume ratio of 5.01 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 79% of all other readings from the last year, meaning calls have been bought to open over puts at a faster-than-usual clip.

Analysts Optimistic After VMware Earnings

VMW is up 4.9% at $88.37 -- fresh off an annual high of $89.50 -- after the company delivered a solid earnings report and announced a $1.2 billion stock buyback program. The shares have since seen price-target hikes from no fewer than 12 brokerage firms, including one to $105 from $91 at Jefferies, territory the stock hasn't seen since April 2014. VMware, Inc. shares have been on a tear, nearly doubling in value year-over-year, with recent pullbacks contained by the 50-day moving average. Short sellers may find themselves increasingly underwater, with short interest accounting for 30.8% of VMW's float. These bearish bets would take over three weeks of trading to cover, at VMW's average daily volume, and a mass exodus of short sellers could fuel the security's fire.

Wynn Resorts Upgraded After Earnings

WYNN is up 7.7% at $102.86, after the company's fourth-quarter revenue beat expectations, although profit fell short. WYNN was upgraded to "buy" from "neutral" at UBS, and to "neutral" from "reduce" at Instinet and Nomura. The stock also received no fewer than seven price-target hikes, including one to $132 from $129 at Citigroup, a level WYNN hasn't seen the north side of since April 2015. WYNN shares have spent most of the last nine months churning in the $88-$104 area, though option players have been quick to bet on a breakout. WYNN's 10-day call/put volume ratio of 2.90 at the ISE, CBOE, and PHLX is ranked just 3 percentage points from an annual peak.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check.

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners