Analyst Upgrades: Electronic Arts, Sarepta, Herbalife

Analysts upwardly revised their ratings on Electronic Arts Inc. (NASDAQ:EA), Sarepta Therapeutics Inc (NASDAQ:SRPT), and Herbalife Ltd. (NYSE:HLF)

Josh Selway
May 6, 2015 at 9:20 AM
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Analysts are weighing in today on gaming giant Electronic Arts Inc. (NASDAQ:EA), biopharmaceutical name Sarepta Therapeutics Inc (NASDAQ:SRPT), and nutrition focus Herbalife Ltd. (NYSE:HLF). Here's a quick roundup of today's bullish brokerage notes on EA, SRPT, and HLF.

  • EA is surging in pre-market action, adding 4.8% thanks to a fiscal fourth-quarter earnings beat. In response, no fewer than 10 brokerage firms raised their price targets on the equity, with Credit Suisse and Baird each setting the bar the highest, at $75. The shares have already more than doubled in the past 12 months, closing yesterday at $59.16, so it's not surprising that call buying has been popular of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Electronic Arts Inc.'s 50-day call/put volume ratio of 2.95 ranks higher than 70% of readings from the past year.

  • SRPT is seeing similar success ahead of the bell, picking up 4.9% after Baird raised the stock to "outperform" and lifted its price target by $4 to $20. This comes ahead of the company's first-quarter earnings release, scheduled for tomorrow morning. So far in 2015, Sarepta Therapeutics Inc has dropped 8.4%, finishing at $13.25 yesterday, and short sellers have taken notice. Short interest accounts for almost 38% of SRPT's float, and would take over 18 sessions to buy back, at average daily volumes.

  • HLF raised its full-year guidance, crushed earnings estimates, and saw its price target hiked to $53 from $50 at Canaccord Genuity. Now, the shares are 14% higher in electronic trading, poised to continue their recent success. That is, during the past two months, Herbalife Ltd. has outdone the S&P 500 Index (SPX) by 19 percentage points to settle yesterday at $40.09, and short-term speculators have been trading calls in response. HLF's Schaeffer's put/call open interest ratio (SOIR) of 1.06 is lower than 80% of readings from the past year. In other words, traders targeting options expiring within three months or less are far more call-skewed than normal

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