TWLO, COST, DECK Stocks Upgraded Today

Costco shares are set to explore uncharted territory after a profit beat and round of price-target hikes

May 26, 2017 at 9:22 AM
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Analysts are weighing in on cloud name Twilio Inc (NYSE:TWLO), retail stock Costco Wholesale Corporation (NASDAQ:COST), and UGG maker Deckers Outdoor Corp (NYSE:DECK). Here's a quick roundup of today's bullish brokerage notes on shares of TWLO, COST, and DECK.

TWLO Stock Higher After Upbeat William Blair Note

William Blair maintained its "outperform" rating on Twilio stock after the company's SIGNAL conference, saying TWLO's "fundamentals ... remain solid." After closing last night squarely at $25, TWLO shares are trading 1.2% higher ahead of the bell -- looking to widen their recent bounce off a May 8 low of $22.80. This rebound could find help from short sellers, who have been in covering mode recently. Short interest fell 5.1% in the most recent reporting period, but still accounts for 31.4% of TWLO's available float. 

COST Stock Points To New Highs After Earnings

Costco earnings came in above the consensus estimate, while revenue and same-store sales also beat. No fewer than five brokerage firms have raised their price targets on COST stock in response, including Credit Suisse to $195 from $187 -- in uncharted territory. Against this backdrop, Costco shares are 1.8% higher in electronic trading, set to open the session above their May 4 record high of $176.06. 

Heading into today's trading, COST stock was already boasting a 13.5% year-to-date lead, based on last night's close at $174.73. Nevertheless, one COST options trader played defense ahead of earnings, and initiated a long put spread with the weekly 5/26 167.50- 173-strike puts -- betting the stock would breach $167.50 by tonight's close.

DECK Stock Signals Post-Earnings Bull Gap

Deckers Outdoor turned in an unexpected profit in the fiscal fourth quarter and offered up an upbeat current-quarter outlook. "What's not to like," said Canaccord Genuity, which raised its price-target on DECK stock to $76. Jefferies also raised its price target, to $68 from $60. After closing Thursday at $56.57, Deckers shares are set to jump nearly 13% out of the gate.

Since a pair of early February bull gaps brought DECK stock off of an earnings-induced bottom -- and back above the round $50 mark -- the security has been making a series of higher lows. There's plenty of room for upgrades to spark additional tailwinds for the shares, considering 10 of 14 analysts maintain a tepid "hold" rating.

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