Tech Analyst: Zynga Rating Hits Shares Down 5%, Cree Target Drops, Aruba and SAP are Buys
Investors are becoming more bullish on Wednesday as buyers have taken the DJIA above 12,500, the S&P 500 above 1,300 and the Nasdaq above 2,750. Brokerage analysts revealed their latest insights on the following tech stock movers today:
Zynga, Inc. (NASDAQ:ZNGA): Sterne Agee does not see online gambling helping Zynga. Speculation about online gambling has pushed Zynga up 15 percent in a week. The firm says this is “a long shot.” Zynga has yet to show investors how mobile games will be monetized and it reiterates an Underperform.
Cree Inc. (NASDAQ:CREE): Sterne Agee lowers Cree target from $46 to $28 on weaker than expected results. LED lighting demand should pick up some time this year,according to Sterne Agee and the firm also expects a lessening in price declines. The firm says wait for a recovery before buying the shares.
Aruba Networks, Inc. (NASDAQ:ARUN): Pacific Crest says aggressive buy on Aruba shares below $20. Pacific Crest believes gross margins at Aruba’s may not be getting the respect deserved and competitive risks are overstated. The firm maintains an Outperform while thinking shares could reach $27.
SAP AG (NYSE:SAP): Pacific Crest say strong pipeline at SAP. The firm believes SAP’s quotas for the year should be greater than expected, noting a 15 percent or more increase. The firm maintains an Outperform.
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