Analyst Update: Aetna Inc, AT&T, and Lululemon

Analysts adjusted their ratings on AET, T, and LULU

Dec 12, 2014 at 1:29 PM
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Analysts are weighing in today on insurance issue Aetna Inc (NYSE:AET), blue chip AT&T Inc. (NYSE:T), and yoga apparel seller Lululemon Athletica inc. (NASDAQ:LULU). Here's a quick look at today's brokerage notes on AET, T, and LULU.

  • After yesterday announcing a surge in "ObamaCare" customers, AET has received a rush of positive attention from the brokerage crowd. No fewer than eight analysts raised their price targets on the stock -- the loftiest of which came from Susquehanna, which boosted its target to $105 from $100, and reiterated its "positive" assessment. Nevertheless, Aetna Inc is following the broad market lower this afternoon, down 0.4% at $87.76. Longer term, though, the equity has tacked on roughly 28% year-to-date. In options land, traders have been scooping up long calls over puts at an accelerated clip recently. AET's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PH (PHLX) call/put volume ratio of 2.75 ranks in the 84th annual percentile.

  • T saw its price target trimmed to $39 from $41 at Raymond James. This negative note -- which follows several others from earlier this week -- has the shares sitting 1% below breakeven at $32.40 -- and down almost 8% in 2014. On the sentiment front, short sellers have set their sights on AT&T Inc., where short interest makes up 5% of the stock's total float. More significantly, at T's typical daily trading volume, it would take nearly 13 sessions to repurchase all of these bets.

  • LULU continues to benefit from yesterday morning's earnings beat, up 4.4% at $53.21. Week-to-date, in fact, the stock has added almost 17%. Today's upward move is being fueled by price-target hikes at no fewer than 11 brokerage firms, with Barclays setting its sights the highest -- raising its price target to $65 from $55, to go along with a repeated "overweight" rating. In 2014, however, Lululemon Athletica inc. is still sitting at a roughly 10% year-to-date deficit. Not surprisingly, these longer-term struggles have enticed short sellers, as one-fifth of the equity's float is dedicated to short interest, which would take nine sessions to cover, given LULU's average daily rate of trading.


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