Analyst Update: American International, Nu Skin

Analysts adjusted their ratings on AIG, CLF, and NUS

Oct 20, 2014 at 11:40 AM
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Analysts are weighing in today on insurance issue American International Group Inc (NYSE:AIG), mining company Cliffs Natural Resources Inc (NYSE:CLF), and personal care products marketer Nu Skin Enterprises, Inc. (NYSE:NUS). Here's a quick look at today's brokerage notes on AIG, CLF, and NUS.

  • AIG has edged 0.4% higher to trade at $50.98, following an upgrade to "buy" from "hold" at Deutsche Bank. The brokerage firm likewise raised its price target on the stock by $1 to $60. This, despite shares of American International Group Inc sitting slightly in the red on a year-to-date basis. Elsewhere, options traders have expressed pessimism toward the equity in recent weeks. Specifically, AIG's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.04 sits just 8 percentage points from a 52-week peak.

  • CLF was hit with a downgrade to "sell" from "neutral" -- as well as a price-target cut to $5 -- at Citigroup earlier, but has nonetheless added 1.1% to hover near $8.84. Taking a step back, it's been a miserable year for the shares, which have shed approximately two-thirds of their value in 2014. Not surprisingly, the majority of covering analysts are pessimistic toward Cliffs Natural Resources Inc, with 11 out of 13 firms sporting a "hold" or worse rating. On the fundamental front, the company will report third-quarter earnings one week from today's close.

  • NUS has tacked on 1.1% to trade at $44.09, after receiving a "buy" initiation and $75 price target from Pivotal Research. Such optimism is rare for the stock, which is down roughly 68% on a year-to-date basis. For example, 10.3% of Nu Skin Enterprises, Inc.'s float is sold short, as short interest expanded 31.7% during the two most recent reporting periods. What's more, the security's 50-day ISE/CBOE/PHLX put/call volume ratio of 2.72 ranks in the bearishly skewed 85th percentile of its annual range.

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