Analyst Update: Five Below, Dillard's, Atara Biotherapeutics

Analysts adjusted their ratings on Five Below Inc (NASDAQ:FIVE), Dillard's, Inc. (NYSE:DDS), and Atara Biotherapeutics Inc (NASDAQ:ATRA)

Jun 4, 2015 at 1:33 PM
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Analysts are weighing in on retailers Five Below Inc (NASDAQ:FIVE) and Dillard's, Inc. (NYSE:DDS), as well as drugmaker Atara Biotherapeutics Inc (NASDAQ:ATRA). Here's a quick roundup of today's brokerage notes on FIVE, DDS, and ATRA.

  • FIVE is popping today -- up 8.2% at $37.98 -- after the firm's better-than-expected first-quarter results and upwardly revised full-year forecast received a round of applause from the brokerage bunch. Dougherty, for example, raised its price target by $5 to $45, while Barclays boosted its target price to $44 from $42. Wells Fargo, meanwhile, said Five Below Inc's "growth story is back on track," and should continue to improve. Since late April, FIVE has been sandwiched between support at its 60-day moving average and resistance at its 32-day trendline, but thanks to today's gap, the security is on pace to close north of its 320-day moving average for the first time since Jan. 8. Meanwhile, it appears option traders were betting on a post-earnings slide. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.64 ranks in the 90th annual percentile, meaning puts have been bought to open over calls at a near-annual-high clip.
  • Credit Suisse weighed in on department stores today, downgrading the sector as a whole to "underweight" from "market weight." The brokerage firm also took aim at individual names within the sector, and for DDS, this resulted in a rating cut to "underperform" from "neutral." In response, the shares have tumbled 2.4% to $114.40, and are at risk of closing south of their 320-day moving average for the first time since February 2014. Longer term, Dillard's, Inc. has surrendered nearly 21% since topping out at a record high of $144.21 in mid-April, but option traders have been rolling the dice on a bounce. At the ISE, CBOE, and PHLX, the security's 10-day call/put volume ratio of 1.16 rests higher than 66% of similar readings taken in the past year.
  • Biotechs have been garnering a lot of attention this week, and sector component ATRA saw its price target lifted to $47 from $43 at Jefferies overnight -- sending the stock 4.7% higher today to $42.83. This positive price action is just more of the same for an equity that's surged more than 60% year-to-date. Should Atara Biotherapeutics Inc extend this momentum, another round of price-target hikes could be on the horizon, considering the stock's consensus 12-month price target of $42.67 is roughly in line with current trading levels.

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