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Analyst Upgrades: BioMarin, Digital Ally, and Marvell

Analysts upwardly revised their ratings on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), Digital Ally, Inc. (NASDAQ:DGLY), and Marvell Technology Group Ltd. (NASDAQ:MRVL)

Jun 18, 2015 at 9:28 AM
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Analysts are weighing in on drugmaker BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), surveillance specialist Digital Ally, Inc. (NASDAQ:DGLY), and semiconductor concern Marvell Technology Group Ltd. (NASDAQ:MRVL). Here's a quick roundup of today's bullish brokerage notes on BRMN, DGLY, and MRVL.

  • BMRN is up 7.2% in electronic trading, after receiving a number of upbeat analyst notes following reports the company's experimental dwarfism drug, BMN 111, showed promise in a mid-stage study. William Blair, for example, raised its price target to $140 from $126, saying it expects the treatment to be a breakout product for BioMarin Pharmaceutical Inc. SunTrust Robinson, meanwhile, boosted its target price by $19 to $170, explaining it projects global sales of roughly $700 million. On the charts, the stock has had a standout year -- up nearly 37% to trade at $123.60, hitting a late-March record high of $133.54 along the way. Option traders have been rolling the dice on more upside, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 12.94 calls for every put over the past 10 days.

  • H.C. Wainwright initiated coverage on DGLY with a "buy" rating and a $24 price target, representing expected upside of 77% to last night's close at $13.56 -- and a trek into territory not seen since last September. As a result, the stock is up 8.7% ahead of the bell. Today's projected price move would be welcome for a security that's down almost 28% from its mid-May year-to-date high of $18.80. Plus, the shares are poised to topple the $14 mark -- an area that has contained DGLY for most of the past month. On the sentiment front, traders have taken the skeptical route. Specifically, a healthy 19.4% of Digital Ally, Inc.'s float is sold short.

  • Goldman Sachs raised its outlook on MRVL to "neutral" from "sell," removed the stock from its "America's Sell" list, and upped its price target to $14 -- sending the shares 1.4% higher in electronic trading. Technically speaking, MRVL has been on the mend since hitting a 2015 low of $13.05 on May 22, up 8% to trade at $14.10. Against this backdrop, analysts have been changing their skeptical tune, and currently 11 out of 25 maintain a "buy" or better rating on Marvell Technology Group Ltd. This growing optimism has been seen in the options pits, as well, where MRVL's 10-day ISE/CBOE/PHLX call/put volume ratio has jumped to 60.54 from 8.32 over the past two weeks. What's more, the current ratio ranks in the 92nd annual percentile, meaning long calls have been initiated over long puts at a near-annual-high clip.
 

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