Analyst Upgrades: McDonald's Corporation, Lululemon Athletica inc., and Planet Fitness Inc

Analysts upwardly revised their ratings and price targets on McDonald's Corporation (MCD), Lululemon Athletica inc. (LULU), and Planet Fitness Inc (PLNT)

Jan 4, 2016 at 9:11 AM
facebook twitter linkedin

Analysts are weighing in on fast food giant McDonald's Corporation (NYSE:MCD), athletic apparel retailer Lululemon Athletica inc. (NASDAQ:LULU), and gym operator Planet Fitness Inc (NYSE:PLNT). Here's a quick roundup of today's bullish brokerage notes on MCD, LULU, and PLNT.

  • MCD is pointed 0.8% lower ahead of the opening bell, tracking losses in the broader Dow, even after Nomura upgraded the stock to "buy" from "neutral" and raised its price target to $135 from $112. McDonald's Corporation enjoyed a strong year in 2015, adding 26% to close the year at $118.14, and hitting a new all-time high of $120.23 last week. Still, more than half of analysts rate MCD a "hold" or worse. Option traders have been bearish lately, too. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security has racked up a 10-day put/call volume ratio of 1.24 -- which ranks higher than 88% of comparable readings in the last 12 months.
  • LULU is headed 0.5% higher in electronic trading, after Jefferies upgraded the stock to "buy" and hiked its price target to $70, while Wells Fargo upped its rating to "outperform." Additionally, J.P. Morgan Securities hiked its price target on LULU to $66 from $55 -- a 25.8% premium to Thursday's close at $52.47. Lululemon Athletica Inc. has had a rocky few months, repeatedly hitting resistance in the $52 to $54 range, and slumping after reporting disappointing earnings and cutting its profit outlook in December. Traders have been betting against the shares, as well -- more than one-quarter of the stock's available float is sold short, representing five times LULU's average daily trading volume.
  • Roth Capital initiated coverage on PLNT, which closed at $15.63 on Thursday, with a "buy" rating and price target of $18. Since pricing its initial public offering (IPO) at $16 in August, Planet Fitness Inc has traded mostly flat. Analysts seem to be seeing a bright future for the equity, though, as all nine brokerage firms providing coverage currently give PLNT a "buy" rating or better. But traders don't seem convinced. More than 20% of the stock's float is currently wrapped up in short interest. At PLNT's average daily volume, it would take nearly two weeks to buy back all these bearish positions.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners