Analyst Upgrades: Sarepta Therapeutics Inc, Citigroup Inc, and Jabil Circuit, Inc.

Analysts upwardly revised their ratings and price targets on Sarepta Therapeutics Inc (SRPT), Citigroup Inc (C), and Jabil Circuit, Inc. (JBL)

Sep 28, 2016 at 10:08 AM
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Analysts are weighing in on biotech issue Sarepta Therapeutics Inc (NASDAQ:SRPT), bank stock Citigroup Inc (NYSE:C), and Apple Inc. (NASDAQ:AAPL) supplier Jabil Circuit, Inc. (NYSE:JBL). Here's a quick roundup of today's bullish brokerage notes on SRPT, C, and JBL.

  • SRPT is booming on the charts, up 5.9% to $62.58, and fresh off a new 14-year high of $63.73, after RBC raised its price target on the stock to $108 from $83 -- representing a 72.6% premium over current levels, and territory not seen since a huge and short-lived spike in early 2000. Sarepta Therapeutics is sitting on a roughly 64% year-to-date lead, thanks to a big gap higher last week, when the company received long-awaited approval on its Duchenne muscular dystrophy drug. Recent options bears may be disappointed with today's price action, and short sellers are likely sweating by now, too. In fact, more than 35% of SRPT's available float is tied up in these bearish bets. Still, at the stock's average pace of trading, it would take less than a week to cover all 14.3 million shorted shares.

  • C received a price-target hike to $49 from $47 at Deutsche Bank, which weighed in on a number of bank stocks overnight. Citigroup Inc is trading 0.7% higher at $46.70 as a result, but has yet to break out of its consolidation in the $46-$47 range. On the upside, both the $46 level and rising 60-day moving average appear to be providing some support for the shares, which are off nearly 10% in 2016. While most analysts remain in C's bullish corner, options traders have been taking a put-heavy approach of late. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.03 ranks just 2 percentage points from an annual high.

  • JBL has added 2.4% to $22.44 after Goldman Sachs increased its price target on the stock to $23 from $21. Shares of Jabil Circuit, Inc. are just in positive year-over-year territory, but have yet to close last week's earnings-induced bear gap. The stock may have found a new region of support around the $21.50-22 level, however. This area capped JBL's rallies in March and early September, but also limited the stock's losses on Monday. And options traders have long been betting on a rally for the equity. Across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have purchased more than five JBL calls for each put over the past 10 weeks. The resulting call/put volume ratio of 5.23 sits 8 percentage points from an annual bullish peak.
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