Goldman Sachs Names its Newest Conviction Buy

One brokerage firm is betting on Boeing stock to rally to new record highs

Jul 14, 2017 at 11:10 AM
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Analysts are weighing in on cloud computing company Nutanix Inc (NASDAQ:NTNX), Dow component Boeing Co (NYSE:BA), and social media site Facebook Inc (NASDAQ:FB). Here's a quick roundup of today's bullish brokerage notes on shares of NTNX, BA, and FB.

Nutanix On Cloud 9 After Goldman Nod

Nutanix stock is up a whopping 8.8% to trade at $22.05, after Goldman Sachs upgraded NTNX to "conviction buy" with a price target of $31, and the analyst citing the company’s strong market share and M&A appeal. The stock hit a record low on May 1, but today's bullish gap has NTNX trading above its 120-day moving average for the first time ever. Short interest represents more than 40% of Nutanix's float, which means today's big breakout could be the result of a short squeeze.

Boeing Blasts Off After J.P. Morgan Upgrade

In addition to upgrading Boeing Company stock to "overweight" from "neutral," J.P. Morgan Securities raised its price target on BA to $240 from $205 – in uncharted territory. This lifted BA's shares up 1% to trade at $208.50, just below Wednesday night's record high of $208.61. Up more than 33% year-to-date, BA's bullish momentum has propelled the stock into overbought territory, as reflected by its current Relative Strength Index (RSI) of 76.

BA is scheduled to release its earnings July 26, after front-month options expire – so traders can scoop up calls and puts in the July series at a relative bargain. BA's Schaeffer's Volatility Index (SVI) of 15% stands higher than just 4% of all other readings from the past year, indicating near-term options premiums are pricing in relatively low volatility expectations. Moreover, BA sports a Schaeffer's Volatility Score (SVS) of 89, as the stock has typically exceeded option traders' volatility expectations during the past year.

Cowen and Company Raises the Bar for FB Stock

Cowen and Company raised its price target on Facebook stock to $180 from $170, lifting the shares 0.2% to trade at $159.70. Earlier in this session, FB set a fresh all-time peak of $160.14. Up more than 38% year-to-date, FB has used its 40-day and 80-day moving averages as support. Of the 26 analysts following FB stock, 24 deem it a "buy" or better.

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