AAPL, LULU, AVGO Stocks Upgraded Today

Baird is staying bullish on Apple shares ahead of the next iPhone release

Jun 2, 2017 at 9:29 AM
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Analysts are weighing in on iPhone parent Apple Inc. (NASDAQ:AAPL), yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU), and chip stock Broadcom Ltd (NASDAQ:AVGO). Here's a quick roundup of today's bullish brokerage notes on shares of AAPL, LULU, and AVGO.

Baird Reaffirms Bullish Position on AAPL Stock Ahead of WWDC

Apple stock is edging higher ahead of the open, after Baird reiterated its "outperform" rating and $160 price target, saying it remains bullish going into the next iPhone launch. AAPL shares have climbed over 32% in 2017 to trade at $153.18, hitting a record high of $156.65 on May 15. The stock should stay in the limelight next week, too, since the company's Worldwide Developers Conference (WWDC) begins on Monday. In the meantime, AAPL options traders have also been very bullish. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Apple has a 10-day call/put volume ratio of 2.58, which ranks in the 93rd annual percentile. 

LULU Stock Set for Post-Earnings Rally

Lululemon stock is once again ready to make a huge move after earnings, with the shares pointed 16% higher ahead of the open. The company topped expectations with its first-quarter earnings, and also provided a solid outlook for the year,with CEO Laurent Potdevin saying, "We've doubled down on our digital strategy." Even if the pre-market move comes to fruition, it would leave LULU stock below the level it was trading at before its huge March bear gap, with the shares settling at $48.67 on Thursday. And while Susquehanna, D.A. Davidson, and BofA-Merrill Lynch all raised their price targets, FBR lowered its target price to $55, and Canaccord Genuity reiterated its "sell" rating and $41 target. This mixed analyst attention is par for the course for Lululemon Athletica, since 12 brokerages have issued "strong buy" ratings, and 13 others say it's a "hold" or worse. 

AVGO Stock Could Explore Record Highs After Earnings

Broadcom stock is up 5.5% ahead of the open, which would have it at record highs, following a fiscal second-quarter earnings beat and better-than-expected current-quarter forecast. What's more, CEO Hock Tan threw cold water on any M&A speculation for the Apple supplier, saying to investors "don't believe everything you read out there." A number of analysts have since raised their price targets, with Susquehanna predicting a move up to $300. This represents a roughly 28% premium to last night's close at $234.59, but may not be out of the question, given the fact AVGO shares have rallied 44.3% year-over-year. Elsewhere, a number of options traders could get burnt today, since the weekly 6/2 245- and 250-strike calls saw the largest increases in open interest during the past two weeks, and data from the major exchanges shows mostly sell-to-open activity here. 

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