Analyst Update: Cal-Maine Foods, Tesoro, Incyte

Analysts revised their ratings and price targets on Cal-Maine Foods Inc (CALM), Tesoro Corporation (TSO), and Incyte Corporation (INCY)

May 9, 2016 at 3:14 PM

Analysts are weighing in on egg seller Cal-Maine Foods Inc (NASDAQ:CALM), oil stock Tesoro Corporation (NYSE:TSO), and biopharmaceutical company Incyte Corporation (NASDAQ:INCY). Here's a quick roundup of today's brokerage notes on CALM, TSO, and INCY.

CALM has dropped 5.8% at $48.68, after D.A. Davidson downgraded CALM to "underperform" and cut its price target to $45 from $55. The egg distributor has had a rocky six months, with its 200-day moving average capping most rebound attempts since early December. Short sellers have been especially keen on Cal-Maine Foods Inc, and 55.3% of the stock's float is currently short sold, which would take 28.4 days of trading, at CALM's average daily volume, to cover.
TSO is down 2.8% at $75.74, due to an energy slide and a pair of negative analyst notes. Specifically, Credit Suisse and Goldman Sachs cut the stock's price target to $100 and $99, respectively. Since exploring annual lows in February, TSO attempted a rebound, but was halted at its 20-week moving average. Tesoro Corporation's Schaeffer's put/call open interest ratio (SOIR) of 0.35 sits only in the ninth percentile of annual readings, suggesting short-term options traders have been especially call-biased lately, perhaps hoping for a rebound.
INCY is up 4.4% at $73.92, after announcing plans to acquire Ariad Pharmaceuticals, Inc.'s (NASDAQ:ARIA) European arm. The news has overshadowed post-earnings price-target cuts from Piper Jaffray and BMO, to $91 and $76, respectively. INCY is down 34.8% since the beginning of the year, after stopping key drug studies in the first quarter. However, INCY's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) sits at the highest point in a year, at 242.83 calls bought to open for every put. In other words, it appears option buyers have been betting on a surge for INCY.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Tesla Motors Inc, Depomed Inc, and Transocean Inc, and Analyst Downgrades: Apple Inc., Berkshire Hathaway Inc., and Intel Corporation.

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