The Upgrades: American Eagle, Ensco and (NYSE:AEO),(NYSE:ESV),(NASDAQ:MAT)

Today’s upgrades are brought to us by various analysts and include American Eagle Outfitters (NYSE:AEO), Ensco International Incorporated (NYSE:ESV) and Mattel, Inc. (NASDAQ:MAT).  Read on to learn more review some charting analysis.

American Eagle Outfitters (NYSE:AEO) received an upgrade from Brean Murray as the analyst upgraded their outlook from Sell to Hold.  Well, that doesn’t help the stock much as it gaps down from a previous close of $17.56 to open the day at $17.03 (-$0.53/-3.11%).  And the stock price is staying kind of stagnant as it is currently trading at $17.05 a share.  The chart for the stock shows the great run up in price between September and October, which is likely the resultant of better than expected back to school sales.  Although the stock had a massive sell off between mid-October and the end of November, it has been making headway throughout December.  It bounced off the $15 support line near the end of December and that $15 will remain a support for now.  We would look for the stock to make headway up and test the $19.62 resistance level set back on October 19, 2009.

Ensco International Incorporated (NYSE:ESV) gets its upgrade today from Sterne Agee as outlook was raised from Neutral to Buy.  Sterne Agee set a price target of $55, and that is markedly higher than current levels of $43.87.  The stock would gain 25% if the price target is met.  In checking the chart for ESV, we see that the stock bounced off the support line set just above $40, although the stock is presenting some resistance to going higher today as it tries to break through the 50-day moving average.  If it can break the 50-day MA, we would look for the stock to raise higher and test the October 23, 2009 close of $50.32.

And tell me, who doesn’t love toys?  Mattel, Inc. (NASDAQ:MAT) gets an upgrade today also from Sterne Agee.   The analyst raised outlook on the stock from Neutral to Buy and quoted a price target of $26 a share.  The price target is a hefty +$6.21 from current trading price of $19.79 and presents the need for a +31% gain to meet the target.  A gap up open helps a bullish outlook on the stock as it open +$0.20 to $19.70 from the previous close of $19.50 (+1.03%).  The chart for the company shows it has been locked in an uptrend since the gap up open in mid April last year.  The stock is currently approaching the bottom trend line of the trading channel and this may present a great buying opportunity on the stock as it should be receiving support from the 50-day moving average as well. 

Disclosure: No Positions.