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Analyst Update: Expedia, Freeport-McMoRan, Lannett

Analysts adjusted their ratings and price targets on Expedia Inc (EXPE), Freeport-McMoRan Inc (FCX), and Lannett Company, Inc. (LCI)

Jan 27, 2016 at 3:20 PM
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Analysts are weighing in today on travel interest Expedia Inc (NASDAQ:EXPE), natural resource specialist Freeport-McMoRan Inc (NYSE:FCX), and drugmaker Lannett Company, Inc. (NYSE:LCI). Here's a quick roundup of today's brokerage notes on EXPE, FCX, and LCI.

  • While taking an axe to numerous online travel stocks this morning, Goldman Sachs slashed its price target on EXPE to $93 from $135, while Deutsche Bank actually gave the stock a price-target hike of $2 to $154 -- well into record-high territory. The shares are off 5% at $99.66 -- on pace for their first finish in double-digit territory since May -- and testing support at their 80-week moving average. While short interest on Expedia Inc fell almost 32% during the most recent reporting period, these bearish bets still account for about 10% of the stock's total available float. Option traders have been pessimistic, too. During the last 10 weeks, traders have bought to open nearly two EXPE puts for each call on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- a ratio higher than 95% of all readings in the past year.

  • FCX received a price-target increase to $5 from $4.50 at BMO, along with a cut to $7 from $12 at Nomura, a day after the company reported earnings and massive plans to cut debt. Freeport-McMoRan Inc hit a 15-year low of $3.52 just last week, but is on pace for a weekly gain of 16.6%, with the shares up another 9.1% at $4.58 today. Option bulls should be cheering the rally -- FCX's 50-day ISE/CBOE/PHLX call/put volume ratio of 1.92 is in the 92nd percentile of its annual range. Still, the security is down 30.6% in 2016, and short interest remains elevated at 14.9% of FCX's available float.

  • A week ahead of its scheduled quarterly earnings report, LCI cut its full-year guidance, and the shares are on pace for their worst percentage drop since July 2014, down 19% at $28.25. Furthermore, LCI hit a two-year low of $28.12. Clearly unimpressed with the results, Susquehanna, Craig-Hallum, and Raymond James all sliced their price targets on Lannett Company, Inc. -- to $41, $38, and $45, respectively. LCI has lost 61% of its value since hitting an all-time high in April, so it's little surprise that the equity's short interest ratio amounts to about 13 days' worth of trading, at LCI's typical pace. But near-term option traders have taken a more bullish twist recently. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.43 is lower than all but 2% of readings in the past year -- indicating an extreme preference for calls over puts among options expiring in the next three months.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Fitbit Inc, Hawaiian Holdings, Inc., and Terex Corporation and Analyst Downgrades: Apple Inc., Qorvo Inc, and Bed Bath & Beyond Inc.

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