Analysts upwardly revised their price targets on FB, RH, and MS
Analysts are weighing in on social media stock Facebook Inc (NASDAQ:FB), home furnishings retailer RH, and banking issue Morgan Stanley (NYSE:MS). Here's a quick roundup of today's bullish brokerage notes on shares of FB, RH stock, and MS.
Barclays Bullish on Facebook Stock
Barclays initiated coverage on FB stock with an "overweight" rating, citing higher video engagement on the social media site and stating its belief that "the next 3-5 years are going to be 'a golden era' for mobile." The shares closed Tuesday at $141.76, and are now edging higher ahead of the open, meaning they could take aim at last week's record high of $142.31. Short-term options traders are more call-heavy than usual, too. Not only does Facebook Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.53 show call open interest nearly doubles put open interest among options expiring within three months, but it ranks in just the 10th annual percentile.
RH Stock Set to Rally After Q4 Results
Better-than-expected fourth-quarter results have RH stock 16.5% higher in pre-market trading. Telsey Advisory Group raised its price target to $41 from $33 in response, while Goldman Sachs upped its target to $44 from $39. Loop Capital, meanwhile, maintained its "hold" rating and $38 price target, saying RH "remains a 'show me' story." Nevertheless, the shares were already hot before last night's earnings release, outpacing the S&P 500 Index (SPX) by almost 36 percentage points in the last two months to trade at $38. There's room for more analysts to come to the bulls' side, since 79% currently deem RH shares a "hold" or worse.
Morgan Stanley Stock Looks to Rebound After Upgrade
Deutsche Bank upgraded MS stock to "buy" from "hold," and raised its price target to $47 from $43. Like most bank stocks, Morgan Stanley has pulled back from its recent highs, but at $42.49, is still up around 71% year-over-year. Not everyone is sold on the rally, though. That is, short interest on MS stock increased more than 33% in the two most recent reporting periods.
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