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New 'Buy' Ratings for AK Steel, Biogen Stocks; Analysts Love Starbucks

Starbucks stock has pulled back from record highs, but analysts remain bullish

Jun 23, 2017 at 9:30 AM
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Analysts are weighing in on steel stock AK Steel Holding Corporation (NYSE:AKS), drugmaker Biogen Inc (NASDAQ:BIIB), and coffee concern Starbucks Corporation (NASDAQ:SBUX). Here's a quick roundup of today's bullish brokerage notes on shares of AKS, BIIB, and SBUX.

AK Steel Stock Upgraded to "Buy"

AKS stock is pointed 3.5% higher ahead of the bell, courtesy of an upgrade to "buy" from "hold" at Deutsche Bank. Since hitting a near-term low of $5.30 in mid-May, the shares of AK Steel have muscled nearly 19% higher, breaking north of a channel of lower highs and lows in place since the early December peak. In the past two weeks, options buyers have upped the bullish ante in a big way on AKS, as evidenced by the stock's 10-day call/put volume ratio of 49.75 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio is higher than 99% of all others from the past year, demonstrating a much healthier-than-usual appetite for long calls over puts of late.

BIIB Burst Could Please Options Traders

Biogen stock is pointed 1% higher in pre-market trading, after Deutsche Bank initiated coverage with a "buy" endorsement and $318 price target. In addition, a European Medicines Agency committee recommended approval of Biogen's Imraldi drug. BIIB stock has rocketed more than 13% higher in just the past month, and yesterday ended atop its 200-day moving average for the first time since late April. This is likely much to the delight of recent options buyers, as Biogen stock sports a 10-day ISE/CBOE/PHLX call/put volume ratio of 3.96 -- in the 99th percentile of its annual range.

SBUX Stock Gets Another Bull Note

Shares of Starbucks are up 0.6% ahead of the open, after KeyBank started coverage with an "overweight" assessment, citing a strong earnings and revenue outlook. After rallying to a record high of $64.87 back on June 5, SBUX stock has pulled back, closing last night at $59.51. However, Starbucks could now find support from its rising 80-day moving average. Most analysts are already bullish on Starbucks stock, with 16 of 19 rating it a "buy" or "strong buy." Meanwhile, the shares have an average 12-month price target of $66.57 -- in uncharted territory.

 

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