Analyst Update: Zillow, Enanta Pharma, and Cliffs

Analysts adjusted their ratings on Zillow Group Inc (Z), Enanta Pharmaceuticals Inc (ENTA), and Cliffs Natural Resources Inc (CLF)

by Griffin Kruse

Published on Apr 6, 2015 at 11:26 AM
Updated on Jun 29, 2020 at 11:32 AM

Analysts are weighing in today on online real estate concern Zillow Group Inc (NASDAQ:Z), biotech firm Enanta Pharmaceuticals Inc (NASDAQ:ENTA), and commodity issue Cliffs Natural Resources Inc (NYSE:CLF). Here's a quick look at today's brokerage notes on Z, ENTA, and CLF.

  • Barclays lowered its rating on Z to "equal weight" from "overweight," while cutting its price target by $35 to $105, sending the shares down 1.9% to hit $99. On the charts, the shares have Zillow Group Inc remain 11.1% higher year-over-year, and could find support in the $95-$98 region, which has acted as a springboard since mid-2014. Short sellers remain prominent, as nearly 26% of Z's available float is sold short, which would take about eight and a half sessions to cover, at average trading volumes. However, short interest has declined by roughly 13.4% over the last two reporting periods. Should Z once again bounce off support, a continued exit of short sellers could spell tailwinds for the shares.

  • ENTA is 5.7% higher at $32.81, after Deutsche Bank initiated coverage on the stock with a "buy" rating and a $42 price target (representing a 28% premium to current trading levels). The upbeat opinion and price target are somewhat surprising, given the shares of Enanta Pharmaceuticals Inc have fallen 37.6% from their Dec. 29 all-time high of $52.58. This negative price action has piqued the interest of short sellers, as nearly one-third of ENTA's available float is sold short. Furthermore, it would take these traders about 11.6 sessions to cover their bets, at average trading volumes.

  • Deutsche Bank weighed in on a number of commodity firms this morning, cutting its price target on CLF to $5 from $7 while keeping its "hold" rating. Looking back, Cliffs Natural Resources Inc has been a technical underperformer, with the shares down 34.9% year-to-date to hit $4.64 -- despite a 1.2% gain today. Additionally, CLF notched an 11-year low of $4.12 on March 18. Sentiment in the options pits has been bullish, though, as the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.03 ranks higher than 99% of all equivalent readings from the past year. Mirroring this indicator is CLF's Schaeffer's put/call open interest ratio (SOIR) of 1.05, which is the lowest such reading taken over the past year. Simply stated, short-term speculators have never been this call-heavy over the past 12 months.

A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter