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Analyst Update: EP Energy, ARRIS International, Yamana Gold

Analysts revised their ratings and price targets on EP Energy Corp (EPE), ARRIS International plc (ARRS), and Yamana Gold Inc. (USA) (AUY)

May 5, 2016 at 2:22 PM
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Analysts are weighing in on oil-and-gas stock EP Energy Corp (NYSE:EPE), media interest ARRIS International plc (NASDAQ:ARRS), and gold issue Yamana Gold Inc. (USA) (NYSE:AUY). Here's a quick roundup of today's brokerage notes on EPE, ARRS, and AUY.

  • EPE has surged 27.4% to $5.63 today after the company reported better-than-expected first-quarter earnings and receiving a price-target hike to $4.50 from $2.75 at UBS. The stock has been enjoying support from its 60-day moving average since early March, and is now ahead 28.5% year-to-date. EP Energy Corp could see even more gains if analysts shift from their bearish positions. At the moment, not one of the 12 brokerage firms following the security rate it better than a "hold." A short squeeze could also propel the shares higher, as over 40% of EPE's available float is still wrapped up in short interest.
  • Goldman Sachs, Needham, and RBC raised their price targets on ARRS -- to $27, $30, and $31, respectively -- after the company reported impressive earnings for the first quarter. The shares are up 2.6% to $23.73, trading above their 80-day moving average for the first time since early January. Analysts and traders have been optimistic lately, though ARRIS International plc is still down 29% year-over-year. All five brokerages providing coverage give the equity a "buy" or better recommendation, and short interest fell 24% over the last two reporting periods. Plus, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.45 shows calls more than double puts among options expiring in three months or less.
  • AUY is 5% higher at $4.43, after the company's first-quarter earnings beat analysts' predictions, prompting CIBC and RBC to increase their respective price targets on the equity to $3.80 and $4.50. Yamana Gold Inc. has had an incredible year so far in 2016, tacking on a whopping 138%, and hitting an annual high of $5.13 earlier this week. Still, 60% of analysts rate AUY a "hold" or worse, leaving plenty of room for future upgrades. And while long calls have still significantly outpaced long puts in recent weeks, the security's SOIR of 0.58 ranks higher than 94% of all readings taken in the past year, indicating near-term options traders have rarely been more put-heavy toward the stock.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Tesla Motors Inc, Zynga Inc, and Qorvo Inc and Analyst Downgrades: HollyFrontier Corp, Cirrus Logic, Inc., and Metlife Inc.
 

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