3 Tech Stocks Receiving Bullish Analyst Notes

Synopsys earnings beat has the stock notching new highs

Patrick Martin
Aug 17, 2017 at 10:19 AM
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Analysts are weighing in on data storage specialist NetApp Inc. (NASDAQ:NTAP), cloud stock Nutanix Inc (NASDAQ:NTNX), and software name Synopsys, Inc. (NASDAQ:SNPS). Here's a quick roundup of today's bullish brokerage notes on shares of NTAP, NTNX, and SNPS.

NetApp Earnings Beat Prompts Analyst Attention

NetApp stock is down 5.5% to trade at $40.07, despite receiving no fewer than five price-target hikes, including one to $45 from $42 at Jefferies. The bullish brokerage notes come on the heels of the company's fifth straight profit beat. Heading into today's session, NTAP stock was boasting a 20% year-to-date lead, fresh off a three-year high of $45.24 on July 21.

In the options pit, traders have been bracing for a a post-earnings retreat. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows NTAP's 10 day put/call volume ratio at 1.39 -- in the 84th percentile of its annual range, meaning puts have been bought to open over calls at a faster-than-usual clip.

Jefferies Rates Nutanix Stock a 'Buy'

Nutanix stock is up 4.5% to trade at $22.70, after Jefferies started the IT services name with a "buy" rating and a price target of $30 -- territory not seen since before an early March bear gap. NTNX's 40-day moving average has provided support since mid-May, as the shares continue to fight back after falling to a record low of $14.38 on May 1. 

A round of short covering may also be credited for supporting the stock, considering short interest decreased nearly 10% in the last reporting period. However, NTNX is still heavily shorted, with the 13.6 million shares sold short representing roughly 20% of the stock's total available float.

Synopsys Stock Hits Record High After Earnings

Synopsys stock jumped to a record high of $79.66 out of the gate, after the company's fiscal third-quarter revenue beat and upbeat guidance was met with price-target hikes from at least four brokerages, including one from BofA-Merrill Lynch to $92 from $87. SNPS stock was more recently seen trading up 0.2% at $79.24, and has been on an excellent run -- adding 42% year-over-year. Analysts remain optimistic toward SNPS, with six of the eight brokerages covering Synopsys stock rating it a "buy" or better.

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