Analyst Upgrades: Wells Fargo & Co, Melco Crown Entertainment Ltd, and Devon Energy Corp

Analysts upwardly revised their ratings on Wells Fargo & Co (WFC), Melco Crown Entertainment Ltd (ADR) (MPEL), and Devon Energy Corp (DVN)

by Kirra Fedyszyn

Published on Jan 11, 2016 at 10:16 AM

Analysts are weighing in on financial interest Wells Fargo & Co (NYSE:WFC), casino issue Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL), and energy concern Devon Energy Corp (NYSE:DVN). Here's a quick roundup of today's bullish brokerage notes on WFC, MPEL, and DVN.

  • WFC is starting the week up 0.8% at $49.93, thanks to an upgrade to "buy" from "neutral" at Goldman Sachs. Wells Fargo & Co also scored a price-target hike to $60, as the brokerage opined that WFC is best positioned to deal with negative factors, such as lower oil and a slowing Chinese economy. Meanwhile, Susquehanna cut its price target on the stock to $56 from $60. The shares had a rough start to 2016, off 8.1% so far in the New Year, and while short interest has fallen, option traders have grown more pessimistic. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WFC has racked up a 50-day put/call volume ratio of 0.91 -- higher than 92% of all readings in the past year. The company will report quarterly earnings this Friday.
  • After suffering a sharp dip with the broader equities market last week, MPEL is up 5.6% at $14.94, after Morgan Stanley raised its rating on the stock to "overweight" from "equal weight." Casino interests have recently been slipping on concerns that China's economy could continue creating pressure on revenue out of Macau, and both traders and analysts have been accordingly bearish. Six out of nine brokerages say that Melco Crown Entertainment Ltd (ADR) is a "hold" or worse. And on the ISE, CBOE, and PHLX, the stock's 50-day put/call volume ratio of 0.86 is in the highest annual percentile -- meaning option buyers have never been more put-heavy in the past 12 months.
  • A mixed bag of analyst notes and lower crude oil prices have DVN trading 1.4% lower at $28.10 this morning. Barclays upgraded the stock to "overweight" from "equal weight," but cut its price target to $36 from $49. SocGen and Susquehanna also slashed their price targets on Devon Energy Corp, to $50 and $45, respectively. The shares hit a 12-year low of $27.45 on Friday, after falling hard throughout December as oil prices slumped. Analysts seem optimistic, though -- of the 18 brokerages following DVN, 13 call it a "buy" or better. Still, option traders are eyeing further downside. DVN has a 10-day put/call volume ratio of 1.25 on the ISE, CBOE, and PHLX -- higher than 86% of comparable readings in the past year.

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

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


Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Google Postpones Android Reveal, "Now is Not the Time to Celebrate"
"Now is not the time to celebrate," Google said in a message on its website
ZNGA Zooms to 8-Year High on Billion-Dollar Deal
ZNGA is planning to buy Peak for $1.8 billion
Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....