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Analyst Upgrades: Caterpillar, Seagate Technology, Facebook

Analysts upwardly revised their ratings and price targets on Caterpillar Inc. (CAT), Seagate Technology PLC (STX), and Facebook Inc (FB)

Sep 7, 2016 at 9:15 AM
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Analysts are weighing in on construction equipment maker Caterpillar Inc. (NYSE:CAT), data storage specialist Seagate Technology PLC (NASDAQ:STX), and social media stock Facebook Inc (NASDAQ:FB). Here's a quick roundup of today's bullish brokerage notes on CAT, STX, and FB.

  • CAT is up 0.1% in pre-market trading, after Deutsche Bank began coverage on the blue-chip stock with an upbeat "buy" rating and a $98 price target -- a 19.4% premium over Tuesday's close at $82.08, and in territory not seen since late 2014. More recently, Caterpillar Inc. hit an annual high of $84.73 in mid-August, and the shares have been enjoying support from their 50-day moving average for more than two months. Plus, the Dow component could get an extra boost, should more brokerage firms follow Deutsche Bank's bullish lead. Specifically, just one of the 13 analysts following CAT rates the stock a "buy," and the average 12-month price target sits well underfoot, at $73.94. That means CAT could be a prime target for more positive analyst attention in the near future.
  • A price-target hike to $50 from $37 at Craig-Hallum has STX 3.4% higher ahead of the open. The shares have been climbing steadily since their mid-July bull gap. In fact, Seagate Technology PLC has outperformed the S&P 500 Index (SPX) by nearly 45 percentage points over the past three months, closing Tuesday at $34.47. Still, near-term options traders have taken an unusually put-skewed approach toward the stock, per its Schaeffer's put/call open interest ratio (SOIR) of 1.20. This ratio not only shows puts outnumber calls among options set to expire in three months or less, but it ranks higher than 79% of the past year's readings. An unwinding of skepticism as the shares continue to outperform could send STX even higher.
  • FB is up 0.4% ahead of the bell, after Morgan Stanley increased its price target on the stock to $160. The equity hit an all-time high of $129.94 on Tuesday before closing at $129.73, but with a 14-day Relative Strength Index (RSI) of 74 -- in overbought territory -- the shares could be overdue for a breather. Plus, open interest levels are near a call-heavy extreme among options expiring in the next three months. Facebook Inc's SOIR of 0.57 -- showing calls nearly doubling puts -- sits just 3 percentage points from an annual low. A capitulation among the weaker bullish hands on any sign of technical weakness could result in headwinds.
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