Analyst Update: Alcoa Inc, Relypsa Inc, and Universal Display Corporation

Analysts revised their ratings and price targets on Alcoa Inc (AA), Relypsa Inc (RLYP), and Universal Display Corporation (OLED)

May 23, 2016 at 2:36 PM
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Analysts are weighing in on aluminum stock Alcoa Inc (NYSE:AA), drugmaker Relypsa Inc (NASDAQ:RLYP), and lighting specialist Universal Display Corporation (NASDAQ:OLED). Here's a quick roundup of today's brokerage notes on AA, RLYP, and OLED.

  • AA is up 2.1% at $9.31, after BofA-Merrill Lynch bumped its rating up to "buy." Technically speaking, the stock has been pulling back from its year-to-date high of $11.50 from late April, but appears to have found a foothold atop its 200-day moving average -- which acted as a level of support for much of March and April, as well. If Alcoa Inc can extend today's bounce, short sellers may start to hit the exits. Currently, 11.5% of the stock's float is sold short, which would take one week to cover, at AA's average daily trading volume.

  • RLYP has soared 9.2% at $16.34, following an upgrade to "equal weight" from "underweight" at Morgan Stanley. However, the stock has been skidding since topping out in early April at $25.60, due in part to downbeat drug data. Currently, Relypsa Inc is testing resistance at its 40-day moving average -- above which it hasn't closed since an early May bear gap, related to debt refinancing. Despite these longer-term technical struggles, the brokerage crowd is firmly in the stock's bullish camp. Eight of the 11 analysts tracking RLYP consider it a "strong buy," versus one "hold" opinion and two "strong sells."

  • OLED has run nearly 10% higher at $62.00 -- and is approaching its April 19 record high of $63.00 -- after Goldman Sachs bumped its rating up to "buy" from "neutral," and raised its price target to $76 from $55. Specifically, Goldman said it expects Universal Display Corporation to be a "key beneficiary" of Apple Inc.'s (NASDAQ:AAPL) first-time adoption of OLED displays for iPhone. On the options front, short-term traders are far more call-heavy than usual toward the stock. OLED's Schaeffer's put/call open interest ratio (SOIR) of 0.22 ranks in the low 8th percentile of its annual range, with calls nearly quintupling puts among options expiring in the next three months.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Schlumberger Limited, Pandora Media Inc, and Staples, Inc. and Analyst Downgrades: Big Lots, Inc., Juniper Networks, Inc., and Potash Corporation of Saskatchewan.


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