Promising New Drugs Send 2 Pharmaceutical Stocks Soaring

Texas Instruments stock is moving higher after earnings

Jul 26, 2017 at 11:33 AM
facebook twitter linkedin

Analysts are weighing in on biopharmaceutical companies Biogen Inc (NASDAQ:BIIBand Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH), as well as semiconductor stock Texas Instruments Incorporated (NASDAQ:TXN). Here's a quick roundup of today's bullish brokerage notes on shares of BIIB, TTPH, and TXN.

Goldman Sachs Shows High Hopes for Biogen's Alzheimer's Drug

Biogen stock is up 3.2% to trade at $291.90 -- and earlier touched its highest price since March -- after Goldman Sachs upgraded the stock to "buy" and raised its price target almost 20% to $338, citing high hopes for Biogen's Alzheimer's drug aducanumab. BMO also raised its price target on BIIB to $328 from $317, UBS hiked its target to $285 from $270, and Leerink upped its target to $338 from $304.

Option buyers have been upping the bullish ante lately, perhaps to bet on Biogen's earnings report, released yesterday morning. BIIB's 10-day call/put volume ratio of 3.93 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 95% of all other readings from the past year. Additionally, more than half of the 16 analysts following the stock already rate it a "strong buy."

Tetraphase Stock Soars After Positive Drug Study Results

Tetraphase Pharmaceuticals stock is up 11.7% to trade at $7.70, after positive late-stage study results for Tetraphase's Eravacycline, an antibiotic for serious bacterial infections. As such, Stifel upgraded TTPH stock to "buy" from "hold," and lifted its price target by 87.5% to $15. Further, SunTrust Robinson raised its price target to $19 from $14, and BMO gave TTPH a price-target hike to $13 from $12.

Short interest represents three days' of pent-up buying demand, at the equity's average pace of trading. A solid earnings showing -- TTPH is scheduled to report one week from today -- could squeeze the shorts, and help Tetraphase stock break out of recent resistance in the $8-$8.50 area.

Texas Instruments' 2Q Earnings Garner Price-Target Hikes

Texas Instruments stock is up 2.8% to trade at $83.66, after an impressive second-quarter earnings report and no fewer than eight brokerages raised their price targets on TXN. Two of the price-target hikes came from Susquehanna -- to $97 from $95 -- and Jefferies -- to $96 from $94. Of the 21 analysts following TXN, however, only eight rate it a "buy" or better. Considering Texas Instruments stock has rallied roughly 10% since bouncing off support at its 200-day moving average, and is now within striking distance of June's dot-com-era highs, additional upgrades could add fuel to TXN's fire.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners