Analyst Upgrades: Urban Outfitters, GoPro, Ambarella

Analysts upwardly revised their ratings on Urban Outfitters, Inc. (URBN), GoPro Inc (GPRO), and Ambarella Inc (AMBA)

Jul 14, 2015 at 9:04 AM

Analysts are weighing in today on retailer Urban Outfitters, Inc. (NASDAQ:URBN), camera concern GoPro Inc (NASDAQ:GPRO), and semiconductor firm Ambarella Inc (NASDAQ:AMBA). Here's a quick roundup of today's bullish brokerage notes on URBN, GPRO, and AMBA.

Jefferies bumped its on rating on URBN to "buy" from "hold" -- and its price target to $50 from $36 -- sending the shares 2% higher ahead of the bell. Longer term, though, the stock is just 0.7% above its year-to-date breakeven mark, settling Monday at $35.38. In fact, Urban Outfitters, Inc. has spent the past few weeks consolidating in the $35-$36 area, after gapping lower on earnings in mid-May. Analysts are split in their outlook toward URBN. Thirteen brokerages currently rate the equity a "buy" or better, compared to 14 "holds."

GPRO is up 3.2% ahead of the bell, after Barclays upgraded its rating to "overweight" from "equal weight," and boosted its price target to $65 from $50, citing the company's "strong execution since the IPO" and waxing optimistic on the new Hero4. On the charts, GoPro Inc has been on a steady upward trajectory since bottoming at $37.13 in early March, tacking on 40% to trade at $52.11 -- helped by a recent bounce off its 20-week moving average. More gains could be on the way, with the company due to report earnings one week from tonight. In the session following GPRO's late-April release, the stock soared 12.6%. A repeat performance could put the pressure on option bears, as the security's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.87 ranks in the 72nd annual percentile. A capitulation among these skeptics could produce tailwinds.

Despite its pullback over the past month, AMBA has been a beast in 2015, nearly doubling in value to rest at $99.15. Canaccord Genuity rewarded the outperformer, raising its price target to $120 from $115 -- and setting the shares on track for a 1.6% pop out of the gate. At the ISE, CBOE, and PHLX, traders have bought to open puts over calls at an accelerated clip, per Ambarella Inc's 50-day put/call volume ratio of 0.99 -- which sits just 12 percentage points from a 12-month peak. A mass exodus of these doubters could lead to a fresh wave of buying power for AMBA.

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