Analyst Upgrades: Celladon Corporation, American Eagle Outfitters, and Dunkin' Brands Group, Inc.

Analysts upwardly revised their ratings on Celladon Corp (CLDN), American Eagle Outfitters (AEO), and Dunkin Brands Group Inc (DNKN)

by Karee Venema

Published on Mar 5, 2015 at 9:28 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on biotechnology firm Celladon Corp (NASDAQ:CLDN), retailer American Eagle Outfitters (NYSE:AEO), and quick-service restaurateur Dunkin Brands Group Inc (NASDAQ:DNKN). Here's a quick roundup of today's bullish brokerage notes on CLDN, AEO, and DNKN.

  • CLDN is poised to pop more than 11% out of the gate -- and to a new record peak -- after Roth Capital started coverage on the shares with a "buy" rating and a $70 price target, representing expected upside of 256% to last night's close at $19.64. On the charts, the equity has performed well, tacking on 73.8% over the past 52 weeks. Meanwhile, in the options pits, traders have shown a preference for calls over puts. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.56 calls for each put over the past month. Echoing this call-skewed bias is Celladon Corp's Schaeffer's put/call open interest ratio (SOIR) of 0.54, which suggests call open interest nearly doubles put open interest among options set to expire in three months or less.

  • It was a big day for AEO yesterday, which hit a fresh annual high of $16.36, before settling up 7.7% at $15.96 -- thanks to a well-received earnings report. Against this backdrop, no fewer than 10 brokerage firms weighed in on the stock overnight. Stifel, for example, raised its rating to "buy" from "hold," saying "AEO was able to drive sales while successfully reducing promotions. Evidence to us that the customer is responding favorably to the company's improved merchandise." Elsewhere, SunTrust Robinson boosted its price target by $2 from $17, explaining the firm's quarterly earnings report is proof "American Eagle's turnaround is tangible." Should the shares extend this momentum, another round of bullish brokerage notes could come down the pike. Currently, 61% of analysts maintain a "hold" or worse suggestion toward American Eagle Outfitters, while the average 12-month price target of $16.21 is within a chip-shot of the equity's present perch.

  • DNKN is 2% higher in electronic trading, after Goldman Sachs upped its rating on the shares to "buy" from "neutral," and raised its price target by $7 to $54 -- representing a 19.6% premium to last night's close at $45.14, as well as territory yet to be charted. Year-to-date, the shares have added 5.8%, but not everyone is convinced they can sustain this uptrend. Short interest surged over the latest reporting period, and now accounts for a healthy 10.3% of the equity's available float. What's more, at Dunkin Brands Group Inc's average daily pace of trading, it would take more than seven sessions to cover these shorted shares. Meanwhile, the company will make an appearance today at the UBS Global Consumer Conference.

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