Analyst Update: Alibaba, Five Below, and Yelp Inc

Analysts adjusted their ratings on Alibaba Group Holding Ltd (BABA), Five Below Inc (FIVE), and Yelp Inc (YELP)

Oct 28, 2015 at 1:53 PM

Analysts are weighing in today on Chinese Internet issue Alibaba Group Holding Ltd (NYSE:BABA), specialty retailer Five Below Inc (NASDAQ:FIVE), and online review site Yelp Inc (NYSE:YELP). Here's a quick roundup of today's brokerage notes on BABA, FIVE, and YELP.

BABA made news yesterday thanks to its earnings report, and the stock has jumped another 2.3% to $81.21 today -- on pace for its highest close since late July. Today alone, Alibaba Group Holding Ltd has earned a slew of upbeat analyst attention, including price-target hikes to $89 from $85 at Deutsche Bank, to $98 from $92 at Brean, to $110 from $100 at Bernstein, and to $103 from $96 at BofA-Merrill Lynch. These moves could lead to some pressure in the option pits, as BABA's 50-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 0.81, higher than 92% of the readings taken in the past 52 weeks.

FIVE is 6.7% lower at $32.14 this afternoon, following a downgrade to "sell" from "neutral" at Goldman Sachs. The brokerage also cut Five Below Inc's price target to $30 from $34. Technically, the retailer has hit a rough patch -- dropping 22.5% since hitting $41.47 near the end of June. This performance has caught the attention of short sellers and option players alike. Nearly 19% of FIVE's float is sold short, representing almost 17 sessions' worth of pent-up buying demand, at the equity's average daily trading volume. Turning to option players, the security's 10-day put/call volume ratio of 1.38 on the ISE/CBOE/PHLX is higher than 80% of the readings taken in the past year.

YELP is set to reveal quarterly earnings after the closing bell, and Roth Capital took this opportunity to start coverage of the stock with a "sell" rating and $17.50 price target -- approaching three-year-low territory. The shares of Yelp Inc are 2.7% lower at $22.28, bringing their year-to-date loss to more than 59%. Despite this poor performance, YELP's 50-day call/put volume ratio of 2.75 on the ISE/CBOE/PHLX is higher than 83% of the readings taken in the past year. Should Yelp go the way of sector peer Twitter Inc (NYSE:TWTR), a lackluster earnings report could shake loose some option bulls.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Apple Inc., Gilead Sciences, Inc., and Walgreens Boots Alliance Inc and Analyst Downgrades: Peabody Energy Corporation, Macrocure Ltd, and Twitter Inc.

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