Analyst Upgrades: Apple Inc., Edwards Lifesciences Corp, and Analog Devices, Inc.

Analysts upwardly revised their ratings and price targets on Apple Inc. (AAPL), Edwards Lifesciences Corp (EW), and Analog Devices, Inc. (ADI)

by Kirra Fedyszyn

Published on Jul 27, 2016 at 9:43 AM

Analysts are weighing in on iPhone parent Apple Inc. (NASDAQ:AAPL), healthcare stock Edwards Lifesciences Corp (NYSE:EW), and chipmaker Analog Devices, Inc. (NASDAQ:ADI). Here's a quick roundup of today's bullish brokerage notes on AAPL, EW, and ADI.

  • AAPL is up 7.6% at $104.05, after the company's fiscal third-quarter earnings and current-quarter forecast beat expectations -- though iPhone sales declined for the second straight quarter. In response, Raymond James raised its rating on AAPL to "outperform," while no fewer than six analysts have raised their price targets, with Maxim Group setting the loftiest target, at $173. Meanwhile, Needham -- which recently waxed optimistic on AAPL's bottom line -- reiterated its "buy" rating and $150 price target, saying "the worst is behind us." Piper Jaffray, however, lowered its price target by $2 to $151.

    Longer term, Apple Inc. has struggled over the past year, down 16%. Plus, the stock's 40-week moving average has been pressuring the shares since last July, and AAPL is currently going head-to-head with this historically bearish trendline today. While Tuesday's session saw a rush of last-minute bettors picking up puts, sentiment toward AAPL has been running high over the long term, suggesting there may not be much buying power on the sidelines to help keep this earnings-induced rally alive.

  • Strong demand for the company's nonsurgical heart valves helped EW beat expectations for the second quarter and boost its full-year forecast, leading no fewer than 11 brokerage firms to increase their price targets on the stock. While the majority of analysts set their new targets at $130 -- well into never-before-seen territory -- Canaccord Genuity set its sights even higher, at $140. As such, the shares hit a record high of $117.46 out of the gate, last seen up 8.3% at $117.33. Options traders have already shown optimism toward Edwards Lifesciences Corp, which has added 49% year-to-date. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 3.66 sits higher than 82% of the past year's readings.

  • ADI notched a new annual high of $66.91 at the open -- more recently seen up 2.8% at $64.64 -- following news that the company will buy sector peer Linear Technology Corporation (NASDAQ:LLTC) in a roughly $14.8 billion cash-and-stock deal. The news also earned Analog Devices, Inc. a slew of analyst notes, including upgrades to the equivalent of "buy" or better ratings at Oppenheimer, Evercore ISI, and Morgan Stanley. Goldman Sachs, meanwhile, removed the stock from its "Americas Sell" list, boosted its rating to "neutral" from "sell," and raised its price target to $60 from $50. Citigroup, however, downgraded ADI to "neutral."  Heading into today's session, 13 out of 21 analysts already rated ADI a "buy" or better, without a "sell" in sight. But short interest has been creeping up, climbing 15.4% during the most recent two-week reporting period.
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