Analyst Update: Cempra Inc, Clovis Oncology Inc, and SolarCity Corp

Analysts adjusted their ratings on Cempra Inc (CEMP), Clovis Oncology Inc (CLVS), and SolarCity Corp (SCTY)

by Alex Eppstein

Published on Jul 20, 2015 at 2:19 PM

Analysts are weighing in today on pharmaceutical firms Cempra Inc (NASDAQ:CEMP) and Clovis Oncology Inc (NASDAQ:CLVS), as well as alternative energy provider SolarCity Corp (NASDAQ:SCTY). Here's a quick roundup of today's brokerage notes on CEMP, CLVS, and SCTY.

  • CEMP is busting out today, touching a record high of $46.14 earlier, and last seen up 8.1% at $45.47. The sharp move follows a price-target hike to $56 from $42 at Roth Capital, which waxed optimistic on the company's antibiotic, solithromycin. On a year-over-year basis, the stock has almost quintupled in value. Not surprisingly, 100% of analysts consider Cempra Inc a "strong buy" -- though there's room for future price-target hikes, as the consensus price target of $41.90 stands at a discount to current trading levels. Looking ahead, CEMP is tentatively scheduled to report second-quarter earnings next week.

  • CLVS jumped north of $91 out of the gate, but is now sitting fractionally lower at $87.02, despite Goldman Sachs adding the security to its "America's Conviction Buy List." At the same time, the brokerage trimmed its price target to $110 from $116 -- still a 26.4% premium to the stock's current perch, and in record-high territory. Options traders aren't buying the hype. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Clovis Oncology Inc has amassed a put/call volume ratio of 2.32 -- in the 93rd annual percentile. Likewise, almost 22% of the equity's float is sold short, representing two weeks of pent-up buying demand, at CLVS' average trading volumes.

  • SCTY has soared 7.6% to trade at $56.10 -- and is now back in the black on a year-to-date basis -- thanks to a bullish note from Raymond James. Specifically, the brokerage firm said that "the theoretical value of SCTY stock would be close to $100/share," based on the cost of Sunedison' Inc's (NYSE:SUNE) Vivint Solar Inc (NYSE:VSLR) buyout agreement. SolarCity Corp short sellers may be on edge. Over 46% of the stock's float is dedicated to short interest, representing about 12 sessions' worth of trading activity, at SCTY's typical daily clip.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Amazon.com, Inc., Facebook Inc, and Paypal Holdings Inc and Analyst Downgrades: Zillow Group Inc, Yelp Inc, and General Motors Company.


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