Analysts upwardly revised their ratings and price targets on Biogen Inc (BIIB), AstraZeneca plc (ADR) (AZN), and Broadcom Ltd (AVGO)
Analysts are weighing in on drug stocks
Biogen Inc (NASDAQ:BIIB) and
AstraZeneca plc (ADR) (NYSE:AZN), as well as Apple Inc. (NASDAQ:AAPL) supplier
Broadcom Ltd (NASDAQ:AVGO). Here's a quick roundup of today's bullish brokerage notes on BIIB, AZN, and AVGO.
- BIIB is up 5% ahead of the bell after promising results from a study of the company's Alzheimer's treatment were released late Thursday. The news earned Biogen Inc price target hikes at Baird and Stifel -- to $309 and $298, respectively. The stock is off 5.5% year-to-date at $289.54, but the shares appear to have found a foothold above the historically significant $285 level. Meanwhile, analysts are already largely in BIIB's bullish corner, with 12 out of 16 rating the equity a "buy" or better, and not a single "sell" opinion on the books.
- AZN is set to tack on 1.5% at the open on news the company will expand its collaboration with Eli Lilly and Co (NYSE:LLY) on Alzheimer's research. Separately, AZN announced encouraging results on cancer drug Tagrisso. On the brokerage front, Leerink upgraded its rating on AZN to "outperform" from "market perform," even though the stock tapped a three-year low just days ago. In fact, the shares have been falling hard since late September, bringing their 2016 deficit to 22.6%, at $26.27. But that hasn't stopped options traders from picking up bullish bets. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AstraZeneca plc's top-heavy 10-day call/put volume ratio of 32.33 sits in the 87th percentile of its annual range.
- AVGO is on track to notch a new record high at the open, up 6.3% in pre-market trading, after the company reported strong earnings and an upbeat outlook, while also doubling its dividend. While 26 of 27 analysts already recommend buying AVGO shares, at least 11 brokerage firms raised their price targets on the stock, with every one of them setting a target at or above the never-explored $200 mark. B. Riley offered the highest target price of all, at $235 -- a 37.7% premium over last night's close at $170.71. Despite Broadcom Ltd's promising technical setup, there may not be much buying power left on the sidelines to keep the rally alive for long.
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