Analyst Upgrades: Netflix, Inc., AbbVie Inc., and Clovis Oncology, Inc.

Analysts upwardly revised their ratings on Netflix, Inc. (NFLX), AbbVie Inc (ABBV), and Clovis Oncology Inc (CLVS)

by Josh Selway

Published on Apr 13, 2015 at 9:28 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on streaming video giant Netflix, Inc. (NASDAQ:NFLX), pharmaceutical name AbbVie Inc (NYSE:ABBV), and biotech Clovis Oncology Inc (NASDAQ:CLVS). Here's a quick roundup of today's bullish brokerage notes on NFLX, ABBV, and CLVS.

  • NFLX stormed up the charts last week, adding 9.8% to settle at $454.57 on Friday. The shares benefited from some positive attention among analysts -- something that's again helping the stock in pre-market trading this morning. Specifically, UBS raised its opinion on Netflix, Inc. to "buy" from "neutral," while boosting its price target by nearly $200 -- to $565 from $370. The equity is prepared to jump 2.8% out of the gate, but it may not be done there. Fourteen brokerage firms still say NFLX is a "hold" or worse, and the stock is prepared to topple its average 12-month price target of $455.67 today. In other words, the shares could soon benefit from another round of analyst upgrades and/or price-target increases, which could result in tailwinds. Looking ahead, NFLX will report earnings this Wednesday evening.

  • ABBV is 0.2% lower in electronic trading, despite being raised to "outperform" from "market perform" at BMO, which also raised its price target to $68 from $60. On Friday, the shares settled at the higher end of their trading range since early February of $55-$62, closing at $61.49. AbbVie Inc remains 6% below its year-to-date breakeven level, though. This could be part of the reason short-term speculators are relatively put-skewed. The stock's Schaeffer's put/call open interest ratio (SOIR) sits at 0.59, ranking higher than 77% of all similar readings from the past year. Said differently, put open interest outstrips call open interest by a wider margin than usual among options expiring in the next three months.

  • Like Netflix, CLVS is ready to continue last week's success, after Goldman Sachs raised its outlook to "buy" from "neutral" this morning, and increased its price target to $117 from $68. In addition, the brokerage firm raised its estimate on sales of the company's experimental cancer drug rociletinib, and cited the company's potential as an M&A candidate. The shares are ready to take off, adding 8.5% ahead of the open, once again putting pressure on short sellers. Even though Clovis Oncology Inc has outperformed the S&P 500 Index (SPX) by 16 percentage points over the last three months, closing Friday at $77.40, nearly 24% of its float is sold short. What's more, it would take these bearish traders over two weeks to buy back their bets, at normal daily volumes.

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