Analyst Upgrades: Diamond Offshore Drilling, Texas Roadhouse

Analysts upwardly revised their ratings and price targets on Diamond Offshore Drilling Inc (NYSE:DO), Texas Roadhouse Inc (NASDAQ:TXRH), and Royal Gold, Inc. (USA) (NASDAQ:RGLD)

Josh Selway
May 3, 2016 at 10:03 AM
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Analysts are weighing in on oil-and-gas services provider Diamond Offshore Drilling Inc (NYSE:DO), restaurant chain Texas Roadhouse Inc (NASDAQ:TXRH), and gold stock Royal Gold, Inc. (USA) (NASDAQ:RGLD). Here's a quick roundup of today's bullish brokerage notes on DO, TXRH, and RGLD.

  • DO posted better-than-expected first-quarter earnings yesterday morning and subsequently rallied, but the stock is down 1.3% today at $24.22. The shares are shrugging off a round of bullish analyst notes, with no fewer than seven brokerage firms raising their price targets. The most ambitious mark came from Iberia Capital, which raised its price target to $26 from $20. Shareholders would like to see Diamond Offshore Drilling Inc surpass the $25 area that's acted as resistance for the past two months. An unwinding of bearish sentiment could be just the ticket. For example, DO's Schaeffer's put/call open interest ratio (SOIR) of 1.18 lands in the 91st annual percentile, signaling an unusual put-skew among short-term speculators. 

  • TXRH has added 2.9% this morning to trade at $43.28, after the company's first-quarter earnings and revenue beat Wall Street's expectations. The shares have now gained an impressive 28.5% year-over-year, with today's price action putting them just below their all-time high of $44.91 from last month. Analysts are eyeing even more upside for Texas Roadhouse Inc, with Barclays coming in as one of at least seven brokerage firms to raise its price target on the stock, lifting its expectations to $50 from $47. Continued outperformance could bring even more bullish analysts to the table, since 69% of those covering TXRH say it's a "hold" or worse. 

  • Canaccord Genuity raised its price target on several gold stocks this morning -- which makes sense, given the precious metal's meteoric rise in 2016. The brokerage firm upped its price target on RGLD to $71 from $66, though the shares are unchanged at $61.57. Today aside, the stock's technical strength has been phenomenal, as Royal Gold, Inc. was trading below $25 per share as recently as late January. While there's been a slight drop-off in the bullish bias we witnessed from options traders about a month ago, RGLD's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) still stands at 2.25, with long calls more than doubling puts. 
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