VanceInfo Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of technology consultant VanceInfo Technologies (NYS: VIT) were flying high today, gaining as much as 11% in intraday trading after a bullish call on Wall Street.
So what: Roth Capital showed optimism on VanceInfo today, initiating research coverage on the company with a buy rating and a $16.50 price target. Roth joins fellow bulls JPMorgan Chase and Oppenheimer. In January, JPMorgan reiterated its overweight rating on VanceInfo, while Oppenheimer upgraded the stock from perform to outperform.
According to data from S&P Capital IQ, most of the 13 analysts covering VanceInfo have a bullish view of the stock. The group's median price target for the stock is $16.
Now what: The additional thumbs-up from Roth Capital is certainly a feather in VanceInfo's cap. However, the rating doesn't change the underlying fundamentals for the company, and it's just a single view on the stock's potential. Today's action may be good reason for investors with VanceInfo on their radar to take a closer look at the stock, but Roth's view alone isn't enough reason for Foolish investors to blindly buy.
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