Analyst Upgrades: Netflix, Inc., Wayfair Inc, and Gilead Sciences, Inc.

Analysts upwardly revised their ratings and price targets on Netflix, Inc. (NASDAQ:NFLX), Wayfair Inc (NYSE:W), and Gilead Sciences, Inc. (NASDAQ:GILD)

by Josh Selway

Published on Jan 20, 2016 at 9:25 AM

Analysts are weighing in on streaming media giant Netflix, Inc. (NASDAQ:NFLX), online retailer Wayfair Inc (NYSE:W), and biotech Gilead Sciences, Inc. (NASDAQ:GILD). Here's a quick roundup of today's bullish brokerage notes on NFLX, W, and GILD.

  • After reporting upbeat earnings and unexpectedly strong subscriber growth for the fourth quarter, NFLX is looking at a 2.2% gain when the market opens. Also potentially boosting the shares pre-market are no fewer than nine price-target hikes from analysts, with Cowen and Company setting the bar the highest at $155 -- though Pivotal Research cut its expected price to $155 from $165, still in record-high territory. The stock has outperformed the S&P 500 Index (SPX) by 14 percentage points during the past three months, coming in at $107.89, amid recent support from its 200-day moving average. Even so, short sellers are prevalent, which could translate into a short-squeeze situation. Roughly 11.5% of Netflix, Inc.'s float is sold short, representing almost a week's worth of buying power, at normal daily volumes. 

  • An upgrade to "buy" from "neutral" at Citigroup has eyeing a 1.5% pop at the open. A slim majority of analysts agree with this assessment, as six of 11 brokerage firms call Wayfair Inc a "strong buy." The e-tail shares enjoyed a holiday season boost last month, but have fallen in step with the broader market in 2016, giving back 19.4% at $38.40. Call buying has still been the more popular strategy in the stock's options pits, with 1.32 calls bought to open for every put over the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). 

  • GILD is off 1.3% in electronic action, even after Credit Suisse initiated coverage with an "outperform" rating and $125 price target -- territory never before explored. The shares came close to this level back in June when they hit an all-time high of $123.37, but have since fallen over 27% to trade at $89.90. In the meantime, put buying has become unusually popular. Gilead Sciences, Inc.'s 10-day put/call volume ratio at the ISE, CBOE, and PHLX of 0.81 is higher than 95% of similar readings from the past year. 
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