Analyst Update: Alphabet, FireEye, and LDR Holding

Analysts adjusted their ratings on Alphabet Inc (GOOGL), FireEye Inc (FEYE), and LDR Holding Corp (LDRH)

Oct 9, 2015 at 1:36 PM

Analysts are weighing in today on search concern Alphabet Inc (NASDAQ:GOOGL) -- formerly known as Google -- cybersecurity firm FireEye Inc (NASDAQ:FEYE), and medical holding company LDR Holding Corp (NASDAQ:LDRH). Here's a quick roundup of today's brokerage notes on GOOGL, FEYE, and LDRH.

GOOGL is down 0.1% at $666.35, despite a price-target hike to $815 from $750 at Credit Suisse. The brokerage also rated Alphabet Inc an "outperform," echoing the already bullish sentiment on the Street. At last check, GOOGL sports 28 "strong buy" rankings, three "buys," and a solitary "hold." This optimism is echoed in the option pits, as GOOGL's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 2.12, which is higher than 87% of the readings taken in the past 52 weeks. Perhaps traders are betting on a solid earnings showing next week?

FEYE is 1.2% higher at $31.87, despite a price-target cut and a downgrade. Specifically, Dougherty & Company downgraded the cybersecurity concern to "neutral" from "buy," while Barclays cut FireEye Inc's price target to $39 from $56. Since touching an annual high north of $55 in June, FEYE has dropped 42.4%. It's no surprise, then, that 16% of FEYE's float is sold short -- representing more than a week's worth of pent-up buying demand, at the stock's average daily trading volume. In the same vein, the equity's 10-day put/call volume ratio on the ISE/CBOE/PHLX sits at 0.76, higher than 94% of the readings taken during the past year. Finally, further downgrades are a distinct possibility, as 13 of the 23 brokerages tracking FEYE rate it a "buy" or better.

Last night, LDRH offered lackluster third-quarter revenue guidance. This news stoked the ire of analysts, as LDR Holding Corp. saw BMO drop its price target to $38 from $52, JMP Securities cut its target to $46 from $53, and RBC lower its target to $33 from $50. As a result, the stock has dropped 25% to $27.04 -- and hit an annual low of $26.23. Since hitting a record high of $47.12 in August, the shares have been tripping lower beneath resistance from their 10-week moving average, and have now breached support in the $33-$35 region. With all seven of the analysts tracking LDRH rating it a "buy" or better, and the average 12-month price target of $49 in uncharted territory, the door is wide open for further downgrades and price-target cuts.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Netflix, Inc., Micron Technology, Inc., and Wells Fargo & Co and Analyst Downgrades: Tesla Motors Inc, Super Micro Computer, Inc., and Gap Inc.

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