Analyst Upgrades: Cisco Systems, Inc., NetApp Inc., and Digital Ally, Inc.

Analysts upwardly revised their ratings and price targets on Cisco Systems, Inc. (NASDAQ:CSCO), NetApp Inc. (NASDAQ:NTAP), and Digital Ally, Inc. (NASDAQ:DGLY)

Karee Venema

Aug 18, 2016 at 10:01 AM

Analysts are weighing in on tech stocks Cisco Systems, Inc. (NASDAQ:CSCO), NetApp Inc. (NASDAQ:NTAP), and Digital Ally, Inc. (NASDAQ:DGLY). Here's a quick roundup of today's bullish brokerage notes on CSCO, NTAP, and DGLY.

CSCO's fiscal fourth-quarter earnings arrived slightly above the consensus estimate, amid what CEO Chuck Robbins called a "challenging environment with volatility." Additionally, Cisco Systems, Inc. confirmed recent layoff rumors, although the number is much less than previously speculated. Analysts were quick to chime in, too, with CSCO receiving no fewer than eight price-target hikes, including one from Cowen and Company to $40 -- territory not charted by the stock since January 2001. Nevertheless, shares of CSCO are down 2% at $30.12, pulling back from the eight-year high of $31.25 they tagged on Aug. 9. Traders, meanwhile, are extremely call-heavy among near-the-money options in the soon-to-expire August series, per CSCO's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 0.43.

NTAP is up 13.3% to trade at $32.69, after the company reported stronger-than-forecast fiscal first-quarter earnings. The stock also received a bevy of bullish brokerage attention, with upgrades from J.P. Morgan Securities (to "neutral") and Susquehanna (to "positive") included in the bunch. Today's bull gap puts NetApp Inc. up 23% on the year -- and at levels not seen since last November. A continued rise could shake some of the weaker bearish hands loose, too. Although short interest dropped 5% in the latest reporting period, it would still take nearly eight sessions to cover the remaining bearish bets -- leaving ample sideline cash available to help fuel today's rally.

Maxim initiated coverage on DGLY with a "buy" rating and a $15 price target -- a level the stock hasn't seen the north side of since June 2015. While the shares of DGLY are up 10.8% at $6.16 as a result, they appear to be running out of steam near their year-to-date breakeven mark. Unlike Maxim, short sellers have been quick to bet against the stock. Short interest surged 53% in the two most recent reporting periods, and now accounts for more than one-fifth of Digital Ally, Inc.'s available float. In fact, with roughly 1 million shares sold short, short interest is at its highest mark since September 2014.

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