NTAP stock scored an upgrade ahead of earnings
Analysts are weighing in on Snapchat parent Snap Inc (NYSE:SNAP), mobile camera maker GoPro Inc (NASDAQ:GPRO), and data storage specialist NetApp Inc. (NASDAQ:NTAP). Here's a quick roundup of today's bullish brokerage notes on shares of SNAP, GPRO, and NTAP.
Rare Upgrade Has SNAP On The Rebound
Snap Inc stock is up 4.3% to trade at $13.14, after Cantor Fitzgerald upgraded the social media stock to "overweight" from "neutral." The brokerage firm opined that Snap's lockup impact "should now be behind the company," and that SNAP stock's "valuation now looks attractive" after the recent sell-off. The upgrade comes at a critical time for SNAP stock, which fell to a record low of $11.28 yesterday, after
Third Point dissolved its stake. SNAP, at its current trading price, has suffered a 23% decline from its March IPO price of $17.
Most analysts are bearish on the Snapchat parent, with 18 out of 26 offering up tepid "hold" or "strong sell" recommendations. SNAP's post-IPO plunge also has short sellers sniffing around. Short interest accounts for 38% of the stock's total available float, and it would take four days to repurchase all of those pessimistic positions, at Snap stock's average daily trading volume.
Goldman Upgrade Has GoPro Stock Moving Higher
GoPro stock is up 4% to trade at $10.13, after Goldman Sachs upgraded the stock to "neutral" from "sell," while upping its price target to $10 from $6.75. GoPro is coming off a
solid earnings report, and Goldman cited the company's upcoming HERO6 camera launch as a reason for the optimism. Since the earnings-induced bull-gap two weeks ago, GPRO stock has traded above its 200-day moving average, marking the longest stretch above this trendline since October.
Despite the recent upturn, short interest remains prevalent. Over 27 million GPRO shares are sold short, accounting for over one-quarter of the stock's total available float. It would take over two weeks to buy back all of the pessimistic positions, at GPRO's average daily trading volume. This means that there is plenty of room for a short squeeze that could push GoPro even higher.
NetApp Receives Analyst Nods Ahead of Earnings
NetApp stock is up 1.2% to trade at $42.56, after getting upgraded by Longbow to "buy" from "hold," while scoring a price-target hike to $53 from $48 at Susquehanna -- territory not explored since 2011. This optimism ahead of NetApp's earnings release tomorrow isn't too surprising, considering the tech stock has tacked on 20% year-to-date, and touched a multi-year high of $45.24 on July 21. .
Most analysts remain bearish on the stock, however. Of the 26 brokerages covering NTAP, 20 rate it a "hold" or worse. This indicates that there is plenty of room for further upgrades that could send NTAP stock higher, should the company report well-received earnings tomorrow night.