Cyprus news has the global markets in the red, as the bailout terms sets some ugly precedents along with worries of possible bank runs and possible contagion in the Eurozone. The Euro opened lower by over 1%, a huge move. US futures were down over 1% overnight, but have rebounded slightly. We have been in a buy the dip environment, and that will surely be tested today. Think this pullback is overblown, and folks will pile in at the open. Of course if that doesn’t happen, it could be an ugly day. I will be looking to grab some plays at the open for the dip buyers.
Here are some of the analyst changes:
VZ Verizon upgraded to Buy from Neutral at Citigroup
Citigroup upgraded Verizon (VZ) citing solid wireless fundamentals and a greater likelihood that the company could employ an accretive leveraged buyout of Vodafone's (VOD) stake in Verizon Wireless. Citi raised its price target for Verizon shares to $54 from $46.
UTX United Technologies upgraded to Buy from Neutral at Citigroup
Citigroup upgraded United Technologies citing valuation and the end of the company's transition period. The firm raised its price target for shares to $110 from $88
BUD AB InBev price target raised to $115 from $102 at Jefferies
Jefferies raised its price target for AB InBev shares citing the company's growth prospects and strong cash flows. The firm keeps a Buy rating on the stock.
ISRG Intuitive Surgical upgraded to Buy from Hold at Canaccord
Canaccord upgraded Intuitive Surgical based on recent share weakness. Price target lowered to $527 from $590.
NKE Nike price target raised to $68 from $60 at BofA/Merrill
BofA/Merrill expects Nike's global futures to be driven by price increases, momentum in basketball and strong running trends, increased Air Force 1 allocations, emerging markets growth, and strength in U.S apparel. Shares are Buy rated.
GMCR CMG SBUX Green Mountain price target raised to $67 from $58 at Lazard Capital
Lazard Capital believes Starbucks (SBUX), Green Mountain (GMCR) and Chipotle (CMG) have the best stock upside potential in the Restaurant space. The firm raised its price target for Green Mountain shares to $67 from $58, for Starbucks shares to $74 from $69, and keeps a $393 price target for Chipotle shares.
BREW Craft Brew upgraded to Buy from Neutral at Citigroup
Citigroup upgraded Craft Brew (BREW) citing expectations for accelerating shipment growth in 2013 and limited downside risk given a potential takeout potential by AB InBev (BUD), who has a 32% stake in Craft Brew. Citi raised its price target for Craft Brew shares to $10 from $7.50
JCP J.C. Penney Joe Fresh shop-in-shops a bright spot, says Oppenheimer
After visiting a few of J.C. Penney's new Joe Fresh shop-in-shops, Oppenheimer believes that the stores' merchandise "looks compelling," while customers appear to be reacting positively to them. The firm maintains a Perform rating on the shares.
KORS Michael Kors shares recommended at Goldman
Goldman believes increased concerns over sales trends and the recent supply of Michael Kors shares has created a buying opportunity for this high growth stock. The firm said brand momentum remains strong and Michael Kors continues to take share. The firm reiterated its Conviction Buy rating and $80 price target.
CRM Salesforce.com price target raised to $225 from $200 at FBR Capital
FBR Capital raised its price target for Salesforce.com citing greater appreciation for the company's public sector opportunity. The firm thinks investors should pay close attention to Salesforce.com's success in the public sector and reiterates an Outperform rating on the stock.
The Week Ahead will be in the forum in a few hours so stay tuned: https://www.optionmillionaires.com/forum/forumdisplay.php/5-Week-Ahead-with-UPB
I still love SAM, OPEN, and SHLD. I don’t have positions in SHLD but will look for some today. SFLY and BWLD are on my new ‘stocks i love list’ and will keep an eye on for entry this week.
CRM, NFLX, and LNKD look prime for some calls on a pullback so will watch all three at the open. Here are the strikes I am looking at:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
CRM | CALL | $185.00 | Weekly | 0.25 | 0.20 |
SHLD | CALL | $60.00 | April | 0.59 | 0.50 |
NFLX | CALL | $205.00 | Weekly | 0.44 | 0.35 |
LNKD | CALL | $190.00 | Weekly | 0.24 | 0.20 |
Betting on a bounce and thats how I will plan trading this morning.
Lets have a great start to April Options!!
- JB