Analyst Update: Merrimack Pharmaceuticals Inc, Five Below Inc, and Walt Disney Co

Analysts revised their ratings and price targets on Merrimack Pharmaceuticals Inc (MACK), Five Below Inc (FIVE), and Walt Disney Co (DIS)

Aug 5, 2016 at 3:00 PM
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Analysts are weighing in on biotech concern Merrimack Pharmaceuticals Inc (NASDAQ:MACK), retail stock Five Below Inc (NASDAQ:FIVE), and Dow component Walt Disney Co (NYSE:DIS)Here's a quick roundup of today's brokerage notes on MACK, FIVE, and DIS.  

  • A wider-than-expected quarterly loss from MACK led Cowen and Company to downgrade its rating on the stock to "market perform" from "outperform," while three other brokerages cut their price targets. The shares have shed nearly half of their value year-over-year, down 7.7% today at $5.47, after being rejected at the familiar $6 level on Thursday. Greater pain could be on the way for Merrimack Pharmaceuticals Inc should more analysts lower their outlooks on the stock. At present, three out of four brokerages call MACK a "strong buy," and the average 12-month price target of $12 sits at a level the shares haven't seen since June 2015.
  • FIVE is up 3.9% at $50.87 -- within striking distance of its late-July two-year high -- after UBS reiterated its bullish "buy" rating, while raising its price target on the stock to $55 from $48. Analyst noted the success of "Pokemon Go" could be a boon for the retailer, which sells Pokemon cards at many of its locations, saying the use of the game in "should deliver some near-term momentum." While the shares have been climbing steadily since last November, not everyone is optimistic toward Five Below Inc. Short interest represents 14.4% of the equity's total float, or more than 12 times the stock's average daily trading volumes, though these bearish positions have been waning in recent weeks.
  • Piper Jaffray reiterated its "overweight" rating and $120 price target on DIS, helping the stock edge 0.7% higher to $95.82. The brokerage noted positive expectations for Walt Disney Co's fiscal third-quarter earnings, due next Thursday, citing the recent success of "The Jungle Book," "Captain America," and "Finding Dory," as well as strong home video sales for the latest "Star Wars" film. Though the stock hasn't otherwise seen a lot of love lately -- perhaps unsurprising, given its recent losing streak -- near-term options traders have been taking an unusually call-skewed approach. DIS holds a Schaeffer's put/call open interest ratio (SOIR) of 0.81, showing calls outnumbering puts among options set to expire in the next three months. What's more, this reading sits just 4 percentage points from an annual low.
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