Analyst Update: Delta, Galapagos NV, Sierra Wireless

Analysts adjusted their ratings and price targets on Delta Air Lines, Inc. (DAL), Galapagos NV (GLPG), and Sierra Wireless, Inc. (USA) (SWIR)

Jun 8, 2015 at 2:05 PM
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Analysts are weighing in today on airline operator Delta Air Lines, Inc. (NYSE:DAL), biotech stock Galapagos NV (ADR) (NASDAQ:GLPG), and telecommunications specialist Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). Here's a quick look at today's brokerage notes on DAL, GLPG, and SWIR.

  • DAL has followed its sector peers into the red today, giving back 5.1% at $40.72. Aside from the sector-wide slide -- as well as an attack against U.S. aviation policies from the CEO of Qatar Airways -- a downgrade to "outperform" at Raymond James is putting pressure on the shares. The stock has been moving lower for a while now, losing 20% since its all-time high of $51.06 on Jan. 23. Even so, call buying has been the go-to strategy for DAL option players. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio lands at 6.89, meaning almost seven calls have been bought to open for each put. Plus, this ratio is only 3 percentage points from an annual bullish extreme.

  • GLPG has been on a ridiculous run. Year-to-date, the shares have tripled, and today were last seen 6.6% higher at $55.53. Moreover, the stock just hit an all-time high of $59.19 on June 1, thanks to some strong bounces off its 10-day moving average. This stellar technical performance has brought on a fresh wave of bullish analyst attention, with Morgan Stanley, Cowen and Company, Credit Suisse, and Nomura all initiating coverage on Galapagos NV with the equivalent of a "buy" rating.

  • Last night, Canaccord Genuity cut its price target on SWIR to $44 from $50, but kept its "buy" rating intact. Nevertheless, the security is 5.1% lower today at $27.18, continuing its downward trend on the charts. The stock hit an almost 14-year high of $49.13 on Dec. 31, but has given back 44.7% since then. All of this has made short sellers very happy. Currently, over 14% of Sierra Wireless, Inc.'s (USA) float is sold short, representing 6.3 sessions' worth of trading, at its normal daily volumes.

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