RBC expects Wal-Mart's investments to pay off over time
Analysts are weighing in on blue chip Wal-Mart Stores Inc (NYSE:WMT), semiconductor specialist Marvell Technology Group Ltd. (NASDAQ:MRVL), and software stock Nuance Communications Inc. (NASDAQ:NUAN). Here's what's moving shares of WMT, MRVL, and NUAN.
RBC Upgrades Red-Hot WMT Stock
RBC this morning upgraded Wal-Mart stock to "sector perform" from "underperform" and bumped its price target up to $96 from $92, saying it believes the company's investments will pay off in long-term growth. So far today the shares have added 0.6% to trade at $97.30, as this continue to consolidate below their Nov. 17 record high of $100.10. The security has seemingly found a short-term home atop the $96 level, as it's still trading more than four points above its 20-day moving average. Overall, WMT stock has added close to 10% in the past month alone.
Other analysts, though, have been slow to come around on the large-cap retailer. In fact, 57% of covering analysts still maintain "hold" or "strong sell" recommendations toward Wal-Mart. As such, the door is wide open for additional upgrades to come through.
Marvell Earnings Beat Prompts Bull Notes
Marvell Technology stock has also been on fire in recent weeks, up 35% during the past three months even before today, hitting an 11-year peak of $24.22 a week ago. Now the shares are up another 2% at $23.72, after the company yesterday announced a third-quarter top- and bottom-line beat, along with a strong current-quarter forecast. A handful of bull notes have since come through, with the highest price target coming from Susquehanna at $29.
In the meantime, call buying has remained hot across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The equity's 10-day call/put volume ratio at these exchanges stands at 3.39, meaning call buying has more than tripled put buying during the past two weeks.
NUAN Stock Rises After Earnings
Nuance Communications stock has rallied 8.8% to trade at $17.25, after the company's strong earnings report was met with price-target hikes from Deutsche Bank ($25) and Morgan Stanley ($19). On the other hand, Stifel lowered its target to $18. This marks the third straight day the shares have made a major upside move, not long after touching a 52-week low of $14.02 on Nov. 15. In fact, NUAN stock is now back above its 200-day moving average. This move is bad news for short sellers, who've been piling on Nuance in recent weeks. In the last reporting period alone, short interest rose by 14%