Analyst Update: Qualcomm, PTC Therapeutics, Baidu

Analysts adjusted their ratings on QUALCOMM, Inc. (QCOM), PTC Therapeutics, Inc. (PTCT), and Baidu Inc (ADR) (BIDU)

Jul 15, 2015 at 11:49 AM

Analysts are weighing in today on chipmaker QUALCOMM, Inc. (NASDAQ:QCOM), biopharmaceutical firm PTC Therapeutics, Inc. (NASDAQ:PTCT), and Chinese search engine Baidu Inc (ADR) (NASDAQ:BIDU). Here's a quick roundup of today's brokerage notes on QCOM, PTCT, and BIDU.

QCOM was started with a "neutral" rating and $68 price target at Mizuho. In the wake of this tepid note, the stock has advanced 0.2% to trade at $64.09, but remains almost 14% lower in 2015. Not surprisingly, options traders have been rolling the dice on extended losses for QUALCOMM, Inc. The security has accrued a 10-day put/call volume ratio of 1.17 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), with long puts outweighing long calls. What's more, this ratio ranks just 6 percentage points from a 12-month peak. Looking ahead, QCOM will report earnings one week from tonight.

A number of drugmakers are breaking out today, and PTCT is no exception. Specifically, the shares are up 15% at $56.29 -- and back in positive year-to-date territory -- after being upgraded to "overweight" from "neutral" at J.P. Morgan Securities. Specifically, the brokerage firm gave PTC Therapeutics, Inc.'s late-stage study on its muscular dystrophy treatment, Translarna, an 80% chance of success. The gap higher -- which has PTCT above its 40-day moving average for the first time since late April -- may be putting the hurt on short sellers. Nearly 12% of the stock's float is sold short -- equaling more than one week's worth of trading activity, at typical volumes.

BIDU has retreated 1% to trade at $189.30, following a $22 price-target reduction to $225 at BofA-Merrill Lynch. These technical struggles are consistent with the equity's track record, as the shares have given back roughly 17% of their value in 2015. Shockingly, eight of 11 analysts still maintain a "strong buy" rating on Baidu Inc. On the other hand, option traders aren't nearly so optimistic. BIDU's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.71 rests just 6 percentage points from an annual peak. In other words, speculators have been scooping up puts over calls at an accelerated clip in recent months.

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