Splunk is closing in on its mid-May annual highs
Analysts are weighing in on tech stock Splunk Inc (NASDAQ:SPLK), Facebook rival Snap Inc (NYSE:SNAP), and electric car name Tesla Inc (NASDAQ:TSLA). Here's a quick roundup of today's bullish brokerage notes on shares of SPLK, SNAP, and TSLA.
Credit Suisse Initiates Coverage on SPLK Stock
Following Splunk's recent earnings-induced
bull gap, Credit Suisse initiated coverage on the shares with an "outperform" rating and an $80 price target -- representing expected upside of nearly 19% to last week's close at $67.40, and sitting in territory not charted since March 2014. Nevertheless,
broad-market headwinds have SPLK down 0.2% out of the gate to trade at $67.36.
It's been a choppy year for the security, which entered 2017 trading near $51, and hit a mid-May annual high of $69.23. The shares are still up 31% year-to-date, but many remain skeptical. For example, roughly 10% of Splunk stock's float is sold short, which equates to more than two weeks' worth of buying power, going by average daily volumes.
Stifel Thinks Snap Could Be a Key Player
Stifel reiterated its "buy" rating and $18 price target on Snap stock, saying the Snapchat parent still has the "potential to be a significant player in digital media landscape," and continues to outperform Facebook's Instagram in the 13-24 year-old age range across several key markets. In response, the security is up 1.4% to trade at $14.43.
The stock has been spiraling since first going public in early March -- down 15.1% from its $17 IPO -- with a recent rally off its Aug. 14 record low quickly contained by Snap's 50-day moving average. Short sellers have been steadily increasing pressure on Snap stock, too, with short interest up 230% since the March 15 reporting period.
Deutsche Bank Sees Promise in Tesla's Electric Truck Venture
Deutsche Bank boosted its price target on Tesla stock to $320 from $240, with the brokerage firm waxing optimistic on the company's foray into the electric truck market. Nevertheless, the brokerage firm maintained its tepid "hold" rating, while this new price target still sits at a discount to TSLA's current price, with the shares down 0.8% to trade at $352.72.
After hitting a record high $386.99 on June 23, Tesla shares pulled back to support at their 20-week moving average, and have been bouncing higher atop this rising trendline ever since. The stock is still maintaining a 66% year-to-date lead, too, yet most analysts have followed in Deutsche Bank's skeptical footsteps. While 64% of brokerages rate TSLA stock a "hold" or worse, the average 12-month price target sits at $322.