Analyst Update: Range Resources, Lannett, Accelerate

Analysts adjusted their ratings and price targets on Range Resources Corp. (NYSE:RRC), Lannett Company, Inc. (NYSE:LCI), and Accelerate Diagnostics Inc (NASDAQ:AXDX)

Mar 24, 2016 at 2:53 PM
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Analysts are weighing in on oil-and-gas stock Range Resources Corp. (NYSE:RRC), generic drugmaker Lannett Company, Inc. (NYSE:LCI), and diagnostics specialist Accelerate Diagnostics Inc (NASDAQ:AXDX). Here's a quick roundup of today's brokerage notes on RRC, LCI, and AXDX.

  • Barclays cut its rating on RRC to "underweight" from "equal weight" and its price target to $24 from $27, sending the shares down 2.1% to $30.54. Range Resources Corp. is still up 24% year-to-date, but recently backed down from its 200-day moving average amid slipping oil prices. Bearish option traders could be cheering this week's slide, though. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open about 1.4 RRC puts for each call over the last 50 sessions -- a ratio higher than 96% of comparable readings in the past year.
  • LCI is down 12.6% at $17.79 -- and just off another fresh two-year low of $17.08 -- after downwardly revising its full-year guidance and earning a subsequent downgrade to "sell" from "buy" at Cannaccord Genuity, which also slashed its price target to $18 from $28. Susquehanna and Craig Hallum lowered their targets on Lannett Company, Inc., as well, to $30 and $35, respectively. More than 25% of LCI's available float is already sold short, but with the equity firmly on the short-sale restricted list today, traders are flocking to the option pits, where contracts are crossing at three times the typical intraday clip. LCI has been on a downtrend for nearly a year, shedding 75% since hitting a record high of $72.44 last April.
  • J.P. Morgan Securities initiated coverage on AXDX with an "overweight" rating and $17 price target today, boosting the shares 9.9% to $13.21, and helping Accelerate Diagnostics Inc pare some of its year-to-date loss -- still at 38.5%. AXDX has given up more than half its value since last July, but bearish traders may be sweating if today's rally continues. Specifically, short interest accounts for about 27% of AXDX's available float, and would take more than four weeks to buy back, at the stock's typical pace of trading.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Exelon Corporation, Yahoo! Inc., and KB Home and Analyst Downgrades: Tesla Motors Inc, Alibaba Group Holding Ltd, and Wells Fargo & Co.

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