Each morning we review our top upgrades, downgrades, and initiations from Wall Street research notes. We then look back over these at the end of the week to more closely review calls which highlight underlying catalysts or developments that go far beyond just a one-day impact. Many calls turn out to offer keen insight, but some get a failing grade.
This last week’s top analyst calls of the week were in the following: Activision Blizzard, Inc. (NASDAQ: ATVI); Apple Inc. (NASDAQ: AAPL); Applied Materials Inc. (NASDAQ: AMAT); Cisco Systems, Inc. (NASDAQ: CSCO); Corning Inc. (NYSE: GLW); Dunkin’ Brands Group (NASDAQ: DNKN); Lennar Corporation (NYSE: LEN); Lululemon Athletica Inc. (NASDAQ: LULU); Motorola Solutions, Inc. (NYSE: MSI); NASDAQ OMX Group (NASDAQ: NDAQ); SodaStream International Ltd. (NASDAQ: SODA); The Talbots Inc. (NYSE: TLB); Teavana Holdings, Inc. (NYSE: TEA); Tesoro Corporation (NYSE: TSO); and TiVo Inc. (NASDAQ: TIVO).
Just a week ago we evaluated the myth of The Curse of September, and so far that myth is not bucking the trend seen in the two years before this one. We saw Credit Suisse trim GDP and the S&P 500 for 2011 and 2012, via the SPDR S&P 500 ETF (NYSE: SPY). We even saw hedge fund bearish sentiment reach an extreme high, something which usually is a calling card for a reversal by contrarian investors. There were quite a few analyst calls with big impacts this last week.
Activision Blizzard, Inc. (NASDAQ: ATVI) was initiated with coverage this last Tuesday with a BUY rating and a $16.00 target at Citigroup. What makes this call so interesting is not just that the pullback this week brought it back down to $11.42 for 40$ upside to the new target. The consensus price target is $14.35. What is interesting here is that the $16 target is close to the cycle highs back in 2008 before the meltdown started. With a great game line-up and with a steady revenue stream from monthly subscriptions, it makes you wonder if there is really that much upside. That is a “Street High” target.