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Analyst Upgrades: Adobe Systems, Facebook, Eli Lilly

Analysts upwardly revised their ratings on Adobe Systems Incorporated (ADBE), social networking firm Facebook Inc (FB), and drugmaker Eli Lilly and Co (LLY)

Jun 17, 2015 at 9:23 AM
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Analysts are weighing in today on software giant Adobe Systems Incorporated (NASDAQ:ADBE), social networking firm Facebook Inc (NASDAQ:FB), and drugmaker Eli Lilly and Co (NYSE:LLY). Here's a look at today's bullish brokerage notes on ADBE, FB, and LLY.

  • Shares of ADBE have shed more than 1% in pre-market action, with traders reacting to a downbeat current-quarter forecast. Analysts at Pacific Crest remain upbeat on the tech company's prospects, though, with the firm increasing its price target to $90 from $85 and backing its "overweight" rating. The new target implies expected upside of 12.6% from ADBE's Tuesday close at $79.94. Meanwhile, with Adobe Systems Incorporated shares up about 10% year-to-date -- but churning around familiar resistance in the $80 area -- traders turned skeptical ahead of last night's earnings report. One of the most popular puts in the front-month series is the deep out-of-the-money June 75 strike, with the major options exchanges reporting that most of the 4,448 contracts in residence here were bought to open.

  • Brean hiked its price target on FB to $108 from $100 and reiterated a "buy" recommendation, with the firm apparently looking for the stock to blaze a trail to new highs over the next 12 months. In fact, most brokers have high hopes for FB, based on its 89% "buy" ratings and average 12-month price target of $96.15. Shares of Facebook Inc, which have advanced roughly 26% year-over-year, touched their current record peak of $86.07 back in March, and settled yesterday at $81.06. Following a bout of range-bound price action over the past month, the equity's Bollinger Bands have narrowed and are now just a few points apart -- suggesting FB may be due for a high-volatility breakout.

  • With the stock hovering near 14-year highs, Piper Jaffray started coverage of LLY with an "overweight" endorsement. There could be more bullish notes in store for the outperforming drug stock, as LLY's average 12-month price target of $80.47 stands at a 5.1% discount to Tuesday's finish at $84.78. That said, the security has been edging primarily sideways this week, as it waits for short-term support at its 10-day moving average to catch up with its breakout progress. As of last night's close, the 14-day Relative Strength Index (RSI) for Eli Lilly and Co still stood in overbought territory, at 74 -- suggesting the shares may continue to cool their heels for a while longer before attempting another leg higher.
 

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