AMD, RHT, ADBE Stocks Upgraded Today

ADBE and RHT are both set to hit new highs after earnings

Jun 21, 2017 at 9:24 AM
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Analysts are weighing in on Apple supplier Advanced Micro Devices, Inc. (NASDAQ:AMD), as well as software stocks Red Hat Inc (NYSE:RHT) and Adobe Systems Incorporated (NASDAQ:ADBE). Here's a quick roundup of today's bullish brokerage notes on shares of AMD, RHT, and ADBE.

AMD Stock Set to Gain After Epyc Release

AMD stock is set to add over 8% when the market opens, after the company released a new series of data center chips, called Epyc, meant to compete with Intel. In response, Canaccord Genuity raised its price target to $20 from $17 -- territory not seen since December 2006, and representing a premium of nearly 60% to AMD's closing price of $12.64 yesterday. Shares of Advanced Micro Devices are already up 11.5% year-to-date, and are finding support at their 200-day moving average. The stock has been drawing the attention of short sellers, however, with short interest rising 31% in the last two reporting periods. 

Red Hat Stock Ready for New Highs After Earnings

Red Hat stock is up 9.8% in pre-market trading, thanks to strong quarterly earnings and an upbeat current-quarter outlook. This could put RHT shares in territory not seen since early 2000, after closing yesterday at $89.96. A number of analysts are expecting more upside, too, with several price-target hikes coming through since yesterday's close. The highest of these was a target of $115 at BMO, while the stock was also upgraded to "buy" from "hold' at Stifel.

Meanwhile, an upside move from Red Hat could be very beneficial for recent options buyers. That is, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 4.26 -- ranking in the 71st annual percentile -- suggesting a stronger-than-usual preference for long calls over puts in recent weeks. 

ADBE Stock Set for Fresh Highs 

Adobe also topped analysts' expectations in the earnings booth -- the company's eighth straight earnings beat -- pushing the shares up 4.3% ahead of the open. This puts them on pace for fresh record highs, following yesterday's settlement at $140.91. Of course, this is just more of the same for ADBE stock, which was trading at just $94.01 this time last year. A number of bullish analyst notes have hit this morning, including a price-target hike to $170 from $145 at J.P. Morgan Securities. As for options traders, Adobe's July 145 call saw the largest increase in open interest over the past two weeks, so it's likely a number of bullish speculators will be staring at healthy paper profits if the pre-market move comes to fruition. 

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