Apple, Netflix, Clovis Oncology Upgraded

Apple, Netflix, and Clovis Oncology shares are on analysts' bullish radar today

Karee Venema
Mar 15, 2017 at 9:45 AM
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Analysts are weighing in on iPhone maker Apple Inc. (NASDAQ:AAPL), "FANG" stock Netflix, Inc. (NASDAQ:NFLX), and cancer treatment specialist Clovis Oncology Inc (NASDAQ:CLVS). Here's a quick roundup of today's bullish brokerage notes on AAPL, NFLX, and CLVS shares.

RBC Targets Record Highs for Apple Stock

RBC boosted its price target on AAPL to $155 from $140 -- joining a growing list of analysts expecting record highs for Apple stock. The brokerage firm waxed optimistic over Apple Inc.'s services business, as well as the iPhone 8 cycle, capital allocation, and cash repatriation. Against this backdrop, AAPL shares are trading 0.2% higher at $139.30, and are not far off their March 2 all-time peak of $140.28. Longer term, the stock is up 20% year-to-date, and options traders have been buying to open calls over puts at a near-annual-high clip. AAPL's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.26 ranks 5 percentage points from a 52-week peak.

Netflix Shares Trade Higher After Upgrade

NFLX is up 0.6% to trade at $144.05, after Jefferies upgraded the stock to "hold" from "underperform" and lifted its price target to $135 from $95, saying "international headwinds appear muted." This positive price action is just more of the same for shares of Netflix, Inc., which are up 16% in 2017 -- and topped out at a record peak of $145.95 in mid-February. Nevertheless, put buyers have been active in recent weeks, per the stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.04 -- in the 90th annual percentile. Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.05 rests above 90% of all comparable readings taken in the past year, pointing to a put-heavy bias among short-term options traders.

Analysts Raise Clovis Stock Price Target

CLVS received price-target hikes from Morgan Stanley (to $79), Goldman Sachs (to $75), and Credit Suisse (to $74), following Tuesday's positive ovarian cancer drug data from sector peer AstraZeneca plc (ADR) (NYSE:AZN). At last check, CLVS stock was trading 6% higher at $70.87 -- fresh off an annual high of $71.31 -- widening its year-to-date advance to 60%. The uptrend is likely catching short sellers off guard, considering more than 25% of Clovis Oncology Inc's float is sold short. It would take nearly four sessions to cover these bearish bets, at the stock's average pace of trading, meaning there's ample fuel for a short-covering rally to ensue.

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