Apple, Netflix, Clovis Oncology Upgraded

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

Mar 15, 2017 at 9:45 AM
facebook twitter linkedin


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.

Get a jump-start on the day's stock market news with Schaeffer's free Opening View newsletter.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners