Analyst Update: Enphase Energy Inc, Achillion Pharmaceuticals, Inc., and Netflix, Inc.

Analysts are weighing in on Enphase Energy Inc (ENPH), Achillion Pharmaceuticals, Inc. (ACHN), and Netflix, Inc. (NFLX)

Sep 23, 2016 at 3:18 PM
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Analysts are weighing in on solar energy stock Enphase Energy Inc (NASDAQ:ENPH), biotech Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN), and streaming media giant Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's brokerage notes on ENPH, ACHN, and NFLX.

  • ENPH received a price-target cut to $1.30 from $1.50 at Deutsche Bank, with the brokerage firm citing concerns over the company's liquidity and profitability. This comes after ENPH said it would lay off about 11% of its global workforce as part of a larger restructuring initiative, and announced a public offering priced at $1.20 per share -- a steep discount to last night's close at $1.67.

    As a result, the stock has dropped 29.3% to $1.18, hitting a new record low of $1.16 earlier. Enphase Energy Inc has been slumping under pressure from its 60-day moving average for months, and has shed 66% in 2016 alone. So, it's little surprise only one of the eight analysts providing coverage recommends buying the stock. Short interest is also running high, with 8.8% of the equity's available float wrapped up in these bearish bets. At ENPH's average daily volumes, it would take more than three weeks to buy back all these shorted shares.
  • Wedbush initiated coverage on ACHN with an upbeat "outperform" rating and a price target of $13 -- representing a 48% premium over the shares' current levels. Trading on the stock was briefly halted at midday, while Achillion Pharmaceuticals, Inc. announced positive results in a mid-stage trial of its hepatitis C treatment. The shares were last seen 3.9% higher at $8.77, paring their year-to-date losses to 19%. Though options volume tends to be light, traders have shown a preference for long calls over puts lately. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 4.71 calls on ACHN for every put over the past 20 sessions.
  • NFLX is shaking off bearish attention from Jefferies, which reiterated its "underperform" rating and cut its price target by $4 to $76 -- a level the stock hasn't explored since April 2015. Echoing a recent outlook from one research firm, Jefferies said an upcoming price increase for Netflix, Inc. "could have a larger impact on cancellations," and expressed concern over increased competition from Amazon.com, Inc.'s (NASDAQ:AMZN) Prime video platform. Nonetheless, NFLX has added 0.1% to $95.95 today, which could have option bulls breathing easy. Specifically, the stock's 50-day call/put volume ratio of 1.40 at the ISE, CBOE, and PHLX ranks in the 96th percentile of its annual range. 
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