Analyst Upgrades: Adobe Systems Incorporated, Lululemon Athletica inc., and Ctrip.com International, Ltd.

Analysts upwardly revised their ratings on Adobe Systems Incorporated (NASDAQ:ADBE), Lululemon Athletica inc. (NASDAQ:LULU), and Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP)

by Karee Venema

Published on Oct 7, 2015 at 9:20 AM

Analysts are weighing in on software specialist Adobe Systems Incorporated (NASDAQ:ADBE), yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU), and online travel issue Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP). Here's a quick roundup of today's bullish brokerage notes on ADBE, LULU, and CTRP.

  • ADBE's downwardly revised 2016 profit forecast has done little to shake the enthusiasm of analysts, with the stock receiving price-target hikes from FBR (to $87), Deutsche Bank (to $90), and Susquehanna (to $97). (Evercore ISI, meanwhile, lowered its target price to $95, although this still represents an expected move to uncharted territory). While the shares are off 2.7% in electronic trading, they have tacked on an impressive 17.1% in 2015, and settled last night at $85.15 -- within a stone's throw of their Aug. 18 record peak of $87.25. Should Adobe Systems Incorporated resume its longer-term uptrend, a capitulation from option bears could translate into a fresh burst of buying power. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ADBE's 50-day put/call volume ratio of 0.79 ranks in the 76th annual percentile. In other words, puts have been bought to open over calls at a quicker-than-usual clip.

  • Citigroup initiated coverage on LULU with an upbeat "buy" rating, sending the shares 3% higher ahead of the bell. Analysts have been quick to issue upwardly revised ratings toward a stock that's spent the past two weeks bouncing from the round-number $50 mark -- and closed last night at $51.74 -- but skepticism remains stiff elsewhere on the Street. Specifically, short interest jumped nearly 21% in the two most recent reporting periods, and now accounts for more than 23% of Lululemon Athletica inc.'s available float. An unwinding of these bearish bets could help LULU extend its recent rebound.

  • CTRP has had a standout year, tacking on nearly 51% to trade at $68.65. The stock is positioned to continue this rally today, thanks to an upgrade to "buy" from "neutral" at BofA-Merrill Lynch. Option traders have been taking note of this positive price action in recent weeks. At the ISE, CBOE, and PHLX, for example, Ctrip.com International, Ltd.'s 10-day call/put volume ratio of 5.10 sits higher than 84% of all comparable readings taken in the past year. With a healthy 7.3% of the equity's float sold short, though, some of this call buying may be a result of shorts hedging against more upside.
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!

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


3 Million to Lose Jobs – and Not Because of Coronavirus?
A terrifying new trend can make you a millionaire or destroy your financial future.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.