Analyst Update: Frontier Comm, Amedisys, 21Vianet

Analysts adjusted their ratings on Frontier Communications Corp (FTR), Amedisys Inc (AMED), and 21Vianet Group Inc (VNET)

May 27, 2015 at 1:55 PM
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Analysts are weighing in today on communications specialist Frontier Communications Corp (NASDAQ:FTR), health care concern Amedisys Inc (NASDAQ:AMED), and network services provider 21Vianet Group Inc (NASDAQ:VNET). Here's a quick look at today's brokerage notes on FTR, AMED, and VNET.

  • FTR is 6.3% higher today at $5.23, after Morgan Stanley raised its outlook to "overweight" from underweight." However, the brokerage firm also cut its price target to $6 from $7 on financing concerns related to the company's purchase of Verizon Communications Inc's (NYSE:VZ) wireline assets. The shares will take whatever gains they can get, considering they've given back over 38% since touching a three-year high of $8.46 in mid-February. In Frontier Communications Corp's option pits, put buying has picked up. The security's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 5.81 is only 6 percentage points from an annual high. Elsewhere, it would take over three weeks for traders to repurchase the 111 million FTR shares sold short, at its regular daily volumes.

  • A fresh "buy" rating from SunTrust Robinson has AMED 8.4% higher at $31.57. The shares hit a four-year high of $31.74 earlier, and have more than doubled during the past 12 months. During the past 50 sessions at the ISE, CBOE, and PHLX, only five Amedisys Inc puts have been bought to open, compared to over 400 calls -- suggesting the majority of traders see more upside ahead. Analysts haven't been afraid to show skepticism, though. All nine brokerage firms tracking AMED say it's a "hold" or worse.

  • Finally, there's VNET, which has dropped over 8% today, last seen at $17.09. Yesterday, the company reported disappointing first-quarter numbers and current-quarter guidance, leading Pacific Crest and Canaccord Genuity to cut their price targets on the stock to $24 and $18, respectively. Short sellers are likely smiling, as close to 14% of 21Vianet Group Inc's float is sold short, and would take almost two weeks to buy back, at its average trading pace. Today's technical struggles represent a change of pace for VNET. Over the past three months, the stock has outperformed the S&P 500 Index (SPX) by 13 percentage points.

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