Schaeffer's Trading Floor Blog

Analyst Update: Amgen, Inc., J C Penney Company Inc, and Lululemon Athletica inc.

Analysts adjusted their ratings on AMGN, JCP, and LULU

by 8/28/2014 1:44 PM
Stocks quoted in this article:

Analysts are weighing in today on biotech issue Amgen, Inc. (NASDAQ:AMGN), department store chain J C Penney Company Inc (NYSE:JCP), and yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU). Here's a quick look at today's brokerage notes on AMGN, JCP, and LULU.

  • AMGN announced that it's currently seeking regulatory approval in the U.S. for its cholesterol treatment evolocumab, following successful clinical trials. Deutsche Bank responded to the news by raising its price target on the shares to $163 from $160, helping lift Amgen, Inc. to a record high of $139.38. At last check, the stock was sitting slightly below this mark, at $138.70. Given this technical milestone, additional price-target hikes could be on the way. AMGN's average 12-month price target sits at $140.30, or 1.2% from the equity's current perch.

  • JCP has stumbled this afternoon, down 2.9% to trade at $10.88 following a downgrade to "neutral" from "buy" at BTIG. This is more of the same for the retailer, which has received 16 "hold" or worse ratings, compared to just two "buy" endorsements. Meanwhile, J C Penney Company Inc's consensus 12-month price target of $9.58 represents a discount to current trading levels. However, with the shares up nearly 19% on a year-to-date basis -- and outperforming the broader S&P 500 Index (SPX) by 27.6 percentage points during the previous three months -- a round of upgrades and/or price-target hikes is a possibility.

  • LULU is staring at a 2.5% deficit this afternoon, last seen at $40.44. This is typical of the shares, which are down 31.5% in 2014. Prompting today's negative price action was a downgrade to "neutral" from "buy" at D.A. Davidson, which also reduced the stock's price target to $44 from $46. Even from a broader perspective, Lululemon Athletica inc. is surrounded by negativity. Seventeen out of 25 covering analysts have given the equity a "hold" or worse rating, and 21.2% of LULU's float is sold short -- which would take nearly two weeks to buy back, given the stock's typical daily trading volume.

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