Tesla Toasts Model 3 Demand; Take-Two Stock Cruises to Record High

Short sellers are circling outperforming Square stock

Managing Editor
Aug 3, 2017 at 10:08 AM
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Analysts are weighing in on electric car manufacturer Tesla Inc (NASDAQ:TSLA), video game developer Take-Two Interactive Software, Inc. (NASDAQ:TTWO), and payments processor Square Inc (NYSE:SQ), all of which just reported earnings. Here's a quick roundup of today's bullish brokerage notes on shares of TSLA, TTWO, and SQ.

Higher Model 3 Demand, Revenue, Has Tesla Stock Charging Up the Charts

Tesla stock is up 6.3% to trade at $346.50, after the electric car company reported that quarterly revenue doubled, and touted solid demand for the Model 3 car. As such, RBC raised its price target on TSLA stock to $345 from $314, and Cowen lifted its target to $170 from $155 -- thought that still represents a steep discount to Tesla's current price. It's been an outstanding year for Elon Musk and Tesla stock, which has tacked on 62% year-to-date, despite a steep slide in early July. The climb today takes TSLA shares past their 40-day moving average, which hasn't been topped on a daily closing basis since July 3.

In the options pit, traders were growing increasingly optimistic ahead of earnings. TSLA stock has an International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 10-day call/put volume ratio of 1.22, which ranks in the 77th percentile of its annual range. 

Take-Two Stock Rides 'Grand Theft Auto' to Higher Forecast

Take-Two Interactive stock is up 11.2% to trade at $88.26, and just touched a new record high of $88.83, after the company raised its full-year revenue forecast, powered by strong sales from its "Grand Theft Auto" video game. As a result, no fewer than five brokerages raised their price targets on TTWO stock, including to $108 from $91 at Jefferies. TTWO stock has had an excellent run, up 112% year-over-year, with the shares' 50-day moving average acting as firm support.

Quite a few recent short sellers could be kicking rocks, though. Short interest on TTWO surged 35.6% during the most recent reporting period, with 5.9 million Take-Two shares now sold short.

Analysts Cheer Square Earnings, Guidance

Square stock is down 3% to trade at $25.65, despite the company reporting a smaller-than-expected quarterly loss and upping its full-year guidance. The report was received warmly from analysts, with no fewer than eight brokerages raising their price targets, including to $31 from $24 at RBC -- in uncharted territory. Square stock has had an excellent year, more than doubling over the past 12 months and reaching a record high of $27.97 last Thursday. 

Despite Square's technical success, there remains a great deal of pessimism surrounding the shares. Short interest increased by 36% during the last month, and occupies nearly 10% of the stock's total available float. Should Square resume its hot streak, bears may jump ship, pushing the stock even higher. 

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