Analyst Upgrades: Alder, Ambarella, and Starwood Hotels

Analysts upwardly revised their ratings and price targets on Alder Biopharmaceuticals Inc (ALDR), Ambarella Inc (AMBA), and Starwood Hotels & Resorts Worldwide Inc (HOT)

Mar 29, 2016 at 9:26 AM

Analysts are weighing in on drugmaker Alder Biopharmaceuticals Inc (NASDAQ:ALDR), semiconductor stock Ambarella Inc (NASDAQ:AMBA), and hospitality interest Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT). Here's a quick roundup of today's bullish brokerage notes on ALDR, AMBA, and HOT.

ALDR is up 1.1% in electronic trading after Credit Suisse raised its price target on the stock to $40 from $35. This comes after the shares' nearly 50% gain yesterday on encouraging drug data to settle at $25.70. Alder Biopharmaceuticals Inc is already rated a "strong buy" by both analysts providing coverage -- despite a 22.2% year-to-date loss -- but others are more skeptical of the stock. For example, almost 14% of ALDR's float is sold short, and it would take these bears almost seven sessions to cover their positions, at average daily volumes.

Morgan Stanley upgraded AMBA to "overweight" from "equal weight," stating, "Recent headwinds have bottomed and are likely to become tailwinds." Ambarella Inc is set to pop 5.8% at the open after closing at $40.71 Monday, though it's still off 27% in 2016 amid overhead pressure from its 60-day moving average. But while short interest is still running high, option traders appear to be eyeing a bounce. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 2.41 sits above 94% of all readings from the past year.

HOT received a price-target hike to $95 from $93 at Susquehanna last night, after analysts reported that Marriott International Inc (NASDAQ:MAR) is expected to walk away from the buyout battle after China's Anbang Insurance made a higher offer. What's more, Marriott could stand to collect a more than $400 million "breakup fee" if it doesn't agree to terms with Starwood Hotels & Resorts Worldwide Inc. In the meantime, option traders have been picking up calls at a faster-than-usual clip. HOT's 10-day ISE/CBOE/PHLX call/put volume ratio comes in at 13.52 -- in the 77th percentile of its annual range. The shares settled at $83.75 on Monday.

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