Guggenheim has been busy boosting price targets this morning
Guggenheim chimed in on several FAANG stocks this morning, lifting its price targets for Nasdaq heavyweights Alphabet Inc (NASDAQ:GOOGL), Facebook, Inc. (NASDAQ:FB), and Netflix, Inc. (NASDAQ:NFLX). Here's a closer look at those bull notes, and how the shares of GOOGL, FB, and NFLX are reacting.
Guggenheim Targets Major Upside for Alphabet
The brokerage firm lifted its GOOGL price target to $1,475 from $1,300 -- a 21.8% premium to last night's close at $1,210.81, saying shifts in ad-supported linear audience levels could be a long-term positive for digital media firms. The stock has rallied hard off its late-December lows in triple-digit territory, guided higher by its 30-day moving average. Alphabet is up 0.7% in early trading at $1,219, and could continue this upside in the near term, considering it's been one of the best stocks to own in the second quarter.
Facebook Stock Upgraded to "Buy"
In addition to a price-target hike to $200 from $175, Facebook was upgraded to "buy" from "neutral" at Guggenheim. The analysts suggested privacy risk has become more palatable to investors, and pointed to stabilizing usage trends. This bull note is the second so far this week for the FAANG stock, and has FB shares up 2.4% at $177.71.
Options traders are certainly welcoming this price action, with the equity's 10-day call/put volume ratio of 2.08 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) arriving in the 92nd annual percentile. In other words, calls have been bought to open over puts at a quicker-than-usual clip.
Cowen Upbeat Ahead of Netflix Earnings
Guggenheim raised its Netflix price target to $420 from $400, representing expected upside of 13.6% to last night's close at $369.75. Cowen also chimed in on the streaming giant, saying it expects first-quarter NFLX earnings to be strong on rising original programming hours. The brokerage firm maintained its "outperform" rating and $455 price target -- well above the stock's June 21 record high of $423.21.
At last check, NFLX stock is up 0.3% at $370.78. The shares have surged more than 60% from their Dec. 26 low at $231.23, but have run out of steam near $380 -- home to their late-September/early October trading levels and a late-July post-earnings bear gap.