Analyst Update: Herbalife, Suncor Energy, Target

Analysts adjusted their ratings on HLF, SU, and TGT

Nov 19, 2014 at 1:57 PM

Analysts are weighing in today on nutritional supplements peddler Herbalife Ltd. (NYSE:HLF), oil producer Suncor Energy Inc. (USA) (NYSE:SU), and retailer Target Corporation (NYSE:TGT). Here's a quick look at today's brokerage notes on HLF, SU, and TGT.

HLF is up 0.7% this afternoon to trade at $38.60, after BTIG started coverage on the shares with a "buy" rating. Nevertheless, the stock is down nearly 51% on a year-to-date basis, and got crushed two weeks ago on a disappointing earnings report. Not surprisingly, pessimism is running high on Wall Street. For one, Herbalife Ltd.'s Schaeffer's put/call open interest ratio (SOIR) of 2.66 sits at the top of its annual range. For another, a brow-raising 46% of the stock's float is sold short, which represents more than 17 sessions' worth of pent-up buying power, at average daily trading levels.

SU has dropped 1.5% to churn near $34.17, as the market reacts negatively to the company's 2015 spending plan and production outlook. Moreover, the equity received a price-target cut to C$46 from C$47 at National Bank Financial -- though the firm reiterated its "outperform" rating. Taking a step back, shares of Suncor Energy Inc. (USA) are down 2.5% in 2014, and have been pressured lower in recent weeks by their 10-week moving average. Despite this bleak technical picture, the brokerage crowd remains enamored with SU. Nine out of 11 covering analysts have doled out "buy" or better opinions, versus two "holds" and not a single "sell" recommendation. Plus, the consensus 12-month price target of $48.25 stands at a 41.2% premium to the current share price.

TGT has rallied 6.5% this afternoon -- hitting an annual high of $73.08 earlier -- and at last check was perched at $71.90. The big move is the result of stronger-than-expected third-quarter results, as well as a price-target lift to $59 from $55 at Deutsche Bank. Taking a step back, the security has been on fire recently, with the shares up 16.3% month-to-date. That said, additional bullish brokerage notes could be forthcoming. Fourteen out of the 20 analysts covering Target Corporation have given it a "hold" or worse rating, and the stock's consensus 12-month price target of $61.04 represents a discount to current trading levels. In other words, a round of upgrades and/or price-target hikes could result in tailwinds for TGT.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!