2 Cloud Stocks Seeing Bullish Analyst Attention

Cloud stocks have struggled lately, but today analysts have been bullish

Dropbox Inc (NASDAQ:DBX) is one stock seeing bullish analyst attention this morning, with Instinet upgrading its opinion to "buy" from "neutral" and upping its price target by $1 to $25. The brokerage firm cited an attractive valuation and said revenue growth could begin to accelerate. DBX shares are up 3.7% in response to trade at $19.62.

The stock was in need of good news, as it had been trending lower since topping out at $21.47 in late September. This came one month after the equity touched an all-time low of $17.20.

Despite the technical struggles, options sentiment has been overwhelmingly bullish. This is according to data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which shows a 10-day call/put volume ratio of 14.23, a reading that ranks in the 91st annual percentile. Looking closer, there's notable open interest at the November 120 call.

Another software name in the bullish cross hairs is Workday Inc (NASDAQ:WDAY). Evercore ISI came in this morning and upgraded the stock to "outperform" from "in line," sending WDAY shares up 2.1% at $154.09. This comes after the stock last week gapped lower on skeptical analyst commentary.

Amid this technical uncertainty, interest in short-term put options has picked up. The equity's Schaeffer's put/call open interest ratio (SOIR) is now an even 1.00, showing an equal split between puts and calls open interest among contracts expiring within three months. This reading ranks in the 78th annual percentile, showing it's more usually sitting at a call-skewed number. Peak open interest, however, is at the long-term December 2020 190-strike call.