Analyst Update: Chesapeake Energy and Iradimed Corp

Analysts adjusted their ratings and price targets on Potash Corporation of Saskatchewan (USA) (POT), Chesapeake Energy Corporation (CHK), and Iradimed Corp (IRMD)

Apr 4, 2016 at 2:22 PM
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Analysts are weighing in on fertilizer producer Potash Corporation of Saskatchewan (USA) (NYSE:POT), oil-and-gas stock Chesapeake Energy Corporation (NYSE:CHK), and medical device maker Iradimed Corp (NASDAQ:IRMD). Here's a quick roundup of today's brokerage notes on POT, CHK, and IRMD.

  • POT is 4.5% lower at $16.27, after CIBC cut its opinion on the stock to "sector performer" from "sector outperformer," and its price target to $20 from $23. Potash Corporation of Saskatchewan (USA) went from an eight-year low of $14.64 in late January to a year-to-date peak of $19.37 in early March, but has since backpedaled, and is now on pace to breach its 50-day moving average. But while analysts are less than hopeful -- two-thirds rate the equity a "hold" or worse -- option traders have been ramping up their bullish bets in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), POT's 10-day call/put volume ratio of 8.42 sits 2 percentage points from an annual high.
  • Ladenberg Thalmann raised its price target on CHK to $4 from $3, but the shares are down 3.9% at $3.68, as oil prices fall. After touching a 16-year low of $1.50 in February, Chesapeake Energy Corporation nearly quadrupled in short order, hitting $5.76 in early March. The stock has since cooled off, and is now testing a foothold atop its 80-day moving average. And while option traders appeared to be eyeing another post-Easter pop, analysts aren't so optimistic, giving CHK 17 "hold" or worse ratings, and just one "strong buy."
  • IRMD is off 16.8% at $16.11, after the company reported that its FDA application for an MRI-compatible IV infusion pump was denied, and received a price-target cut to $25 from $30 at Roth Capital. Iradimed Corp has shed 43% of its value in 2016, and traders have been betting on more downside. Short interest on the stock rose by nearly 18% during the last two reporting periods and now accounts for 22% of IRMD's total available float. At the equity's typical pace of trading, it could take about three weeks to buy back all these bearish positions.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Apple Inc., Edwards Lifesciences Corp, and Facebook Inc and Analyst Downgrades: Smith & Wesson Holding Corp, SolarCity Corp, and BlackBerry Ltd.
 

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