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Analyst Update: FirstEnergy, Hologic, Texas Instruments

Analysts revised their ratings and price targets on FirstEnergy Corp. (FE), Hologic Inc. (HOLX), and Texas Instruments Incorporated (TXN)

Apr 28, 2016 at 1:59 PM
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Analysts are weighing in on utilities stock FirstEnergy Corp. (NYSE:FE), healthcare firm Hologic Inc. (NASDAQ:HOLX), and semiconductor specialist Texas Instruments Incorporated (NASDAQ:TXN). Here's a quick roundup of today's brokerage notes on FE, HOLX, and TXN.

  • FE has plunged nearly 10% to trade at $32.51, representing its largest single-day percentage loss in seven years. Sparking the sell-off, the U.S. Federal Energy Regulatory Commission canceled the Ohio Power Purchase Agreement, potentially putting a dent in the energy company's profits. Responding to the news, Jefferies, RBC, and Barclays cut their ratings on FirstEnergy Corp. to the equivalent of a "hold," and also lowered their price targets. Today's sharp losses stand in contrast to yesterday's earnings-induced 4.8% gain, and put the stock below its 160-day moving average for the first time since late January. Elsewhere, short-term options traders have been more put-skewed than usual toward FE. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.70 ranks in the 88th percentile of its annual range.
  • HOLX is also down close to 10%, last seen at $34.22, after the company's poorly received turn in the earnings confessional. While Craig-Hallum and Leerink lifted their respective price targets to $39 and $46, Needham downgraded the stock's rating to "hold" from "buy," and Goldman Sachs cut its price target to $45 from $47. As a result, Hologic Inc.'s year-to-date loss is approaching 12%. It's possible further losses could be just around the corner, assuming bullish options traders start heading to the exits. Specifically, HOLX's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio comes in at a top-heavy 10.61, ranking in the high 78th annual percentile.
  • TXN has tacked on 0.9% to hover near $60.09, and earlier notched a 15-year high of $60.60, as analysts reacted positively to the chipmaker's upbeat earnings report. Specifically, no fewer than 16 brokerages boosted their price targets on Texas Instruments Incorporated, with J.P. Morgan Securities setting the highest bar, at $70. A round of upgrades could be forthcoming, as well. Of the 27 analysts tracking TXN, 17 rate the shares a "hold" or worse. In addition, it may be time for put buyers to start rethinking their bearish positions.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Facebook Inc, First Solar, Inc., and PayPal Holdings Inc and Analyst Downgrades: United States Steel Corporation, Infinera Corp., and Vertex Pharmaceuticals Incorporated.
 

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