Analyst Update: Lululemon Athletica inc., FireEye Inc, and Monsanto Company

Analysts adjusted their ratings and price targets on Lululemon Athletica inc. (LULU), FireEye Inc (FEYE), and Monsanto Company (MON)

by Kirra Fedyszyn

Published on Mar 21, 2016 at 3:19 PM
Updated on Mar 21, 2016 at 3:19 PM

Analysts are weighing in on athletic apparel maker Lululemon Athletica inc. (NASDAQ:LULU), cybersecurity stock FireEye Inc (NASDAQ:FEYE), and agriculture interest Monsanto Company (NYSE:MON). Here's a quick roundup of today's brokerage notes on LULU, FEYE, and MON.

  • LULU is 3.3% lower at $60.42, after J.P. Morgan Securities removed the stock from its "U.S. Equity Analyst Focus" list -- while adding a sector peer. Lululemon Athletica inc. is up 15% year-to-date, but unless things turn around quickly, the shares will finish the session beneath their 40-day moving average for the first time since mid-December. Today's negative note is relatively rare for LULU, with 70% of analysts rating the stock a "buy" or better. But this pullback might be just what some traders want -- nearly one-fifth of the equity's available float is sold short, accounting for about 12 days' worth of trading, at LULU's typical daily pace.
  • Goldman Sachs began coverage on the cybersecurity sector, initiating FEYE with a $20 price target and a tepid "neutral" rating. More than half of the analysts following FireEye Inc give it the equivalent of a "hold," but option traders have been eyeing a rally for the stock, which is up 2.3% at $18.79 today. Specifically, FEYE holds a 10-day call/put volume ratio of 4.15 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- higher than 78% of all readings in the last 12 months. FEYE is still down 9.4% in 2016 after hitting a record low of $11.35 last month, but is on track for its first finish above its 20-week moving average since last July.
  • MON is off 1.6% at $91.49, after Berenberg cut its price target on the stock to $110 from $120.  According to Bloomberg, Monsanto Company is in talks with both BASF and Bayer regarding "a range of possible combinations," including partnerships and the purchase of a crop-science business. Analysts are split equally on the stock, but option traders have taken call buying to a new extreme, as MON's 10-day ISE/CBOE/PHLX call/put volume ratio has surged to an annual high of 16.26. 
For other stocks in analysts' crosshairs, read Analyst Upgrades: Tesla Motors Inc, Nike Inc, and Cyberark Software Ltd and Analyst Downgrades: Valeant Pharmaceuticals Intl Inc, Intel Corporation, and Transocean LTD.

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