Analyst Upgrades: Square Inc, GoDaddy Inc, and Transocean LTD

Analysts upwardly revised their ratings and price targets on Square Inc (SQ), GoDaddy Inc (GDDY), and Transocean LTD (RIG)

Aug 4, 2016 at 9:14 AM

RIG
GDDY
SQ

Analysts are weighing in on payment processor Square Inc (NYSE:SQ), web domain marketplace GoDaddy Inc (NYSE:GDDY), and drilling stock Transocean LTD (NYSE:RIG). Here's a quick roundup of today's bullish brokerage notes on SQ, GDDY, and RIG.

Ahead of the bell, SQ is on fire following a smaller-than-expected quarterly loss, a nearly 42% year-over-year surge in revenue, and an upbeat outlook. Throwing gas on the fire, at least seven analysts raised their price targets on the stock, with CLSA setting the highest bar at $15. In pre-market trading, Square Inc is 15.6% higher after settling yesterday at $10.44 -- and in a 20% year-to-date deficit. This could have short sellers quaking in their boots. Over 11% of SQ's float is sold short, representing 7.5 days' worth of pent-up buying activity, at the stock's average trading volumes.

GDDY's revenue beat and upwardly revised guidance prompted RBC and Deutsche Bank to raise their price targets to $38 and $39, respectively. As a result, the stock is 7.7% higher ahead of the open. Last night, GoDaddy Inc finished at $28.31, its lowest daily settlement since February. Yet, options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have kept the faith. During the last 10 weeks across those exchanges, speculators have bought to open 2.77 GDDY calls for every put, a ratio ranking just 2 percentage points from an annual peak.

Following an upbeat earnings report, RIG saw its target price bumped to $9 from $8.50 at Canaccord Genuity, and is up 3.4% pre-market as a result. However, the new price target represents a deep discount to Wednesday's close at $10.45. Transocean LTD shareholders and option bulls are desperate for today's anticipated gains, with the stock down 15.6% year-to-date, but short sellers may be wary. After all, one-quarter of RIG's float is sold short, which would take one week to cover, at the stock's typical trading levels.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Follow @Schaeffers

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade. Professional traders have rushed into the market and are making a mint. Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.