Analyst Update: Wayfair Inc, Lions Gate Entertainment Corp. (USA), and Activision Blizzard, Inc.

Analysts are weighing in on Wayfair Inc (W), Lions Gate Entertainment Corp. (USA) (LGF), and Activision Blizzard, Inc. (ATVI)

Nov 4, 2016 at 3:35 PM
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U.S. stocks are waffling, as traders eye the latest jobs report amid election uncertainty. Among stocks in focus, analysts are weighing in on e-commerce stock Wayfair Inc (NYSE:W), media company Lions Gate Entertainment Corp. (USA) (NYSE:LGF), and video game stock Activision Blizzard, Inc. (NASDAQ:ATVI). Here's a quick roundup of today's brokerage notes on W, LGF, and ATVI.

  • is up 0.9% at $32.57, despite rumors that a J.P. Morgan Securities analyst had made pessimistic comments about the e-commerce company's sales. However, Citron Research's Andrew Left -- a known W short -- told Benzinga that the stock should be "cut in half."  Ahead of delivering earnings next Tuesday, W has been feeling the heat, is down over 33% since early August -- just before a post-earnings bear gap. Despite the recent negative analyst attention, W's near-term option players have been especially call-skewed of late, with the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.57 sitting just 4 percentage points from an annual low. Today's boost may have been in the cards for Wayfair Inc, as the stock's 14-day Relative Strength Index (RSI) of 28 sat in oversold territory before today.
  • LGF is trading up 10.4% at $20.98, after the company delivered earnings that exceeded expectations, as the entertainment giant prepares to merge with peer Starz (NASDAQ:STRZA). RBC subsequently raised its rating for LGF to "outperform" from "sector perform," and issued a price-target hike to $31 from $24, although Macquarie trimmed its target to $26 from $27. Lions Gate Entertainment Corp. (USA) shares are still down 35% in 2016, but are on pace to topple their 200-day moving average for the first time in nearly a year. While short interest is down by more than 25% over the last two reporting periods, shorted shares still account for nearly 18% of LGF's float, which would take 6.8 days of trading to cover, at LGF's average daily volume.

  • ATVI is trading 4% lower at $41.63, in spite of delivering record earnings and upping its full-year forecast. No fewer than four brokerage firms have raised their price targets for the gaming stock since last night's earnings, including a hike to $53 from $48 by Wedbush. ATVI has been enjoying a series of higher highs and lows since hitting an annual low in February, supported by its 80-day moving average, though the shares are on pace to close below this trendline today for the first time since early April. In spite of ATVI's recent technical strength, option traders have been bearish towards the stock, with Activision Blizzard, Inc.'s 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.73 sitting just 8 percentage points from an annual peak.
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