Analyst Upgrades:, Shake Shack, JCPenney

Analysts upwardly revised their ratings on International, Ltd. (ADR) (NASDAQ:CTRP), Shake Shack Inc (NYSE:SHAK), and J C Penney Company Inc (NYSE:JCP)

May 14, 2015 at 9:38 AM
facebook twitter linkedin

Analysts are weighing in on discount travel service International, Ltd. (ADR) (NASDAQ:CTRP), burger giant Shake Shack Inc (NYSE:SHAK), and retailer J C Penney Company Inc (NYSE:JCP). Here's a quick roundup of today's bullish brokerage notes on CTRP, SHAK, and JCP.

  • CTRP is up 13.3% out of the gate -- and already hit a record high of $75.68 -- after the firm's stronger-than-forecast first-quarter earnings was met with a round of upbeat analyst attention. Specifically, Oppenheimer boosted its outlook to "outperform" from "perform," Stifel raised the stock to "buy" from "hold," and Brean Capital increased its price target to $96 from $70. Today's projected price move just echoes the equity's longer-term technical strength, with International, Ltd. up nearly 63% year-to-date to trade at $74.08. Option traders, meanwhile, have been initiating long puts over calls at a faster-than-usual clip in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CTRP's 50-day put/call volume ratio of 0.83 rests just 5 percentage points from a 52-week peak.
  • SHAK unveiled standout first-quarter results and upwardly revised its full-year revenue forecast -- sending the shares up 9.5% in early trading. Adding to the buzz is a price-target hike to $60 from $40 at Jefferies, which cited Shake Shack Inc's "supercharged growth." On the charts, the stock has put in a strong performance since going public in late January, tacking on more than 59%. However, there is plenty of skepticism surrounding the stock. Short interest accounts for almost 41% of the equity's float, and all six analysts covering SHAK maintain a tepid "hold" recommendation. Plus, the average 12-month price target of $37 sits well below the equity's current perch at $74.86. Should the shares maintain their upward momentum, a round of short-covering and/or some additional bullish brokerage notes could translate into tailwinds for SHAK.
  • UBS upped its price target on JCP to $7 from $5, after the company posted a narrower-than-expected first-quarter loss and raised its annual gross margin goal. Unfortunately for Wednesday's batch of option bulls, the shares do not appear ready to capitalize, and are down more than 5% at $8.27. Heading into today's session, the stock was gaining ground on the charts, up more than 34% year-to-date. Short sellers have maintained their grip, though, and have shorted 32% of JCP's total available float. Elsewhere on the fundamental front, J C Penney Company Inc will host its annual shareholder meeting tomorrow.

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners