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Analyst Update: Metlife, Potash Corp, Adeptus Health

Analysts adjusted their ratings on Metlife Inc (MET), Potash Corp./Saskatchewan (USA) (POT), and Adeptus Health Inc (ADPT)

Sep 18, 2015 at 2:07 PM
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Analysts chimed in on financial firm Metlife Inc (NYSE:MET), fertilizer producer Potash Corp./Saskatchewan (USA) (NYSE:POT), and freestanding ER provider Adeptus Health Inc (NYSE:ADPT).  Here's a quick roundup of today's brokerage notes on MET, POT, and ADPT.

  • MET is 2.9% lower at $46.38 this afternoon, as financial stocks swoon following yesterday's Fed decision. Metlife Inc is also reeling from a price-target cut to $67 from $68 from RBC, as well as sector peer JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon underscoring recent speed bumps for third-quarter revenue in the banking sector. What's more, earlier this week, MET said it would take a $792 million charge in the third quarter, due to tax issues (subscription required). Technically, the stock has struggled to bounce back from the mid-August slump, with rebound attempts stalling in the $50 area. Now, the shares are on pace for their lowest close since October 2013. Bearish option players have taken note and stocked up on MET puts, as the equity's 50-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at a 52-week high of 0.47. Analyst rankings leave ample room for further momentum-stifling downgrades, as 11 of the 15 brokerage houses tracking MET rate it a "buy" or better.
  • POT is 2.6% lower at $24.45, on pace for its lowest close since Aug. 25, after Altacorp cut its price target to $26 from $30. Today's drop is a continuation of Potash Corp./Saskatchewan's (USA) overall trend, as it has given up nearly 31% in 2015, pressured beneath its 10-week moving average. Short-term option players are still more call-oriented than usual, as its Schaeffer's put/call open interest ratio (SOIR) of 0.50 is lower than 82% of the readings taken in the past 52 weeks. Capitulation from this bullish bunch could add downside pressure to the already-struggling shares.
  • ADPT rounds out our stocks today, as it has bucked the bearish trend and is 2.4% higher at $115.75. Late yesterday, Keybanc upped Adeptus Health Inc's target price to $129 from $119 -- in uncharted territory. Turning to the healthcare company's chart (a sector boasting some intriguing opportunities), ADPT is on pace to end back atop its 10-week moving average for the first week in five, and notch its highest weekly close on record. A massive 61.4% of the equity's float is sold short, so today's jump could be some bears liquidating their pessimistic positions. If this is the beginning of a short squeeze, ADPT's short-interest ratio of 6.80 suggests that it could take seven days to exhaust the shorted positions, at the stock's average pace of trading.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Adobe Systems Incorporated, Eli Lilly and Co, and Skyworks Solutions Inc and Analyst Downgrades: Barrick Gold Corporation, Delta Air Lines, Inc., and La Quinta Holdings Inc.
 

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