Analyst Update: Canadian Solar, Ambarella, Valeant

Analysts adjusted their ratings on Canadian Solar Inc. (CSIQ), Ambarella Inc (AMBA), and Valeant Pharmaceuticals Intl Inc (VRX)

Apr 29, 2015 at 1:24 PM
facebook twitter linkedin

Analysts are weighing in today on solar panel maker Canadian Solar Inc. (NASDAQ:CSIQ), semiconductor concern Ambarella Inc (NASDAQ:AMBA), and biotech firm Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Here's a quick look at today's brokerage notes on CSIQ, AMBA, and VRX. 

  • CSIQ CEO Shawn Qu yesterday told Bloomberg that a potential solar-panel shortage could emerge in the second half of the year, as "customers' real demand has been growing." The comments, as well as recent overseas news, propelled CSIQ to year-to-date highs yesterday, and prompted J.P. Morgan Securities to raise its price target on the stock by $3 to $43 -- in annual-high territory -- overnight, while reiterating its "overweight" rating. Technically speaking, Canadian Solar Inc. has been trending upwards, with the shares up 53.7% year-to-date to hit $37.19. What's more, the shares are currently perched atop their 10-day moving average, which -- along with its 20-day cohort -- has served as support since early February. Despite this technical tenacity, options traders have been more put-heavy than usual, as CSIQ's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.67 ranks in the 79th percentile of its annual range. Elsewhere, the stock has been in favor with the brokerage bunch, as all six covering analysts rate it a "buy" or "strong buy." 
  • The shares of AMBA are 3.3% higher at $74.36, after Canaccord Genuity raised its price target on the equity by $5 to $86 -- uncharted territory for the shares -- while reaffirming its "buy" opinion. Furthermore, the brokerage firm said "we believe Ambarella's investments in video analytics will prove significantly undervalue," and cited GoPro Inc's (NASDAQ:GPRO) upbeat guidance for the upbeat attention. This good news is more of the same for Ambarella Inc, as the shares have nearly tripled in value over the last 12 months. Accordingly, sentiment in the options pits has been bullish, as AMBA's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.50 stands in the 96th percentile of its annual range. However, over 25% of AMBA's available float is sold short, which would take nearly eight sessions to cover, at average trading volumes.
  • The shares of VRX are up 1.6% to $208.79 -- and earlier touched an all-time high of $213 -- after the firm posted first-quarter earnings that toppled expectations, upped its full-year outlook, and announced that CFO Howard Schiller is stepping down as soon as a suitable replacement is found. In response, Guggenheim raised its price target on Valeant Pharmaceuticals Intl Inc by $40 to $250 while keeping its "buy" rating, representing a 17.4% premium to today's all-time high. On the charts, VRX has been a technical juggernaut, with the shares up 44.7% year-to-date. Puts have been prominent in the options pits, though, as VRX's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.11 is higher than 87% of all similar readings from the past year. 

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! 



Special Offers from Schaeffer's Trading Partners