Analyst Upgrades: Fitbit, Lululemon, and Walt Disney

Analysts upwardly revised their ratings on Fitbit Inc (NYSE:FIT), Lululemon Athletica inc. (NASDAQ:LULU), and Walt Disney Co (NYSE:DIS)

Jul 7, 2015 at 9:25 AM
facebook twitter linkedin


Analysts are weighing in on wearable fitness device maker Fitbit Inc (NYSE:FIT), yoga apparel issue Lululemon Athletica inc. (NASDAQ:LULU), and blue chip Walt Disney Co (NYSE:DIS). Here's a quick roundup of today's bullish brokerage notes on FIT, LULU, and DIS.

  • It's been a tremendous run for Wall Street rookie FIT. Specifically, the shares have rallied 32.2% since their June 18 open at $30.40, and hit a record high of $44.38 on Friday. Today, the stock is pointed 6.2% higher in electronic trading, after Baird initiated coverage with an "outperform" rating and a $52 price target -- representing expected upside of 29.4% to last night's close at $40.19. This optimistic outlook just echoes the sentiment seen in Fitbit Inc's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 3.91 FIT calls have been bought to open for each put since the stock's options began trading on June 26.

  • Guggenheim named LULU as its "Best Idea" stock, and underscored its "buy" rating. On the charts, LULU has added 15.3% in 2015, but has found a stern level of resistance near $70 -- home to the equity's April 10 annual high. Option traders have been betting on a breakout, per the security's 10-day ISE/CBOE/PHLX call/put volume ratio of 3.44, which ranks in the 83rd annual percentile. Echoing this is Lululemon Athletica inc.'s Schaeffer's put/call open interest ratio (SOIR) of 0.46, which rests lower than 98% of all similar readings taken in the past year. On Monday, LULU settled at $64.30.

  • Atlantic Equities raised its rating on DIS to "overweight" from "neutral," and boosted its price target by $60 to $150. Technically speaking, DIS has tacked on nearly 23% year-to-date -- outperforming many of its fellow Dow components. What's more, the shares topped out at all-time peak of $115.86 yesterday before closing at $115.70, and appear to be ready to take out this notable milestone in today's trading. Option players have been on edge, though, as evidenced by DIS' 10-day ISE/CBOE/PHLX put/call volume ratio of 0.70, which sits in the 79th annual percentile. In other words, puts have been bought to open over calls at a faster-than-usual clip. On the fundamental front, Walt Disney Co is awaiting today's outcome of a city council meeting in Anaheim, California, which will decide whether the company's $1 billion expansion plan is worth a 30-year tax exemption.

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners