Barclays Eyes New Highs for VMW, While Susquehanna Stays Skeptical of NVDA

By Emma Gilkey / September 14, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on information technology (IT) concern VMware, Inc. (NYSE:VMW), computer graphics company NVIDIA Corporation (NASDAQ:NVDA), and online retailer eBay Inc (NASDAQ:EBAY). Here's a quick roundup of today's bullish brokerage notes on shares of VMW, NVDA, and EBAY.

VMW Hits New High After Barclays Upgrade

VMW received an upgrade to "overweight" from "equal weight" at Barclays, along with a price-target raiseto $130 from $109. The new target stands some 3.8% north of VMware's reigning all-time high of $125.25, set back in October 2007. Meanwhile, VMW hit a new three-year high of $111 earlier today, and is currently up 0.2% at $110.68.

VMW's Schaeffer's put/call open interest ratio (SOIR) of 0.95 ranks in the 88th percentile of its annual range, which suggests near-term options traders have rarely been more put-biased during the past year. Conversely, over half of analysts following the stock carry "buy" or better ratings.

Susquehanna Issues Lackluster Price-Target Hike on NVDA

Susquehanna raised its price target on NVDA stock to $155 from $140. This move comes on the heels of a one-year gain of 172% for Nvidia shares, though the upwardly revised target still stands more than 9% south of the stock's current perch. Last seen trading up 0.3% at $170.86, the PC graphics concern reached a record high of $174.56 on August 8, and has since been consolidating into its 40-day moving average.

Options players are considerably more upbeat than Susquehanna. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NVDA has a 50-day call/put volume ratio of 1.55, ranking in the 76th annual percentile. This suggests options traders have bought to open calls over puts at a faster-than-usual clip in recent months.

D.A. Davidson Rates EBAY a "Buy"

D.A. Davidson initiated eBay with a "buy" rating and a price target of $45, just one day after the stock reached a record high of $38.50. The outperforming stock is trading up 0.3% at $38.40, bringing its year-to-date gain to 29%.

However, speculative players have loaded up on bearish options. At the ISE, CBOE, and PHLX, EBAY carries a 50-day put/call volume ratio of 0.87, which ranks in the 95th annual percentile. The stock also sports a SOIR of 1.80, in the 90th percentile. In other words, options players have rarely been more put-heavy during the past 52 weeks.

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