The FAANG Stock Getting Analyst Love; URBN Bucks Retail Trend

Urban Outfitters' earnings beat has the stock rallying

Managing Editor
Aug 16, 2017 at 10:10 AM
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Analysts are weighing in on retailer Urban Outfitters, Inc. (NASDAQ:URBN), FAANG stock Alphabet Inc (NASDAQ:GOOGL), and Chinese internet issue Alibaba Group Holding Ltd (NYSE:BABA). Here's a quick roundup of today's bullish brokerage notes on shares of URBN, GOOGL, and BABA.

Earnings Beat Has Urban Outfitters Surging

Urban Outfitters stock is up 24% to trade at $20.89, after reporting second-quarter earnings and sales figures that topped analyst expectations. As a result, no fewer than six brokerage firms raised their price targets, including a hike to $25 from $23 at Jefferies. The earnings beat comes at a critical time for URBN stock, which has seen its rivals in the retail industry sink this earnings season. The rally today takes URBN shares past their 80-day moving average for the first time since December.

The movement today likely has URBN short sellers nervous. More than 16 million shares are sold short, accounting for 21% of the stock's total available float. It would take six days to repurchase all of those pessimistic positions, at the equity's average daily trading volume. As such, there's a chance Urban Outfitters stock benefits from a short-squeeze situation.

Analyst Sets Lofty Price Target For Alphabet Stock

Alphabet is up 0.4% to trade at $941.89, after SunTrust Robinson started the FAANG stock with a "buy" rating and price target of $1,100. GOOGL shares touched a record high of $1,006.61 on June 6, but have struggled since, currently testing support at their 100-day moving average. 

In the options pits, traders have been showing an unusual preference for puts lately. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows GOOGL with a 10-day put/call volume ratio of 1.00, which ranks 4 percentage points from a 52-week high.

SunTrust Robinson Bullish on Alibaba Stock Ahead Of Earnings

Alibaba stock is up 1% to trade at $159.74, as the Chinese e-commerce giant prepares for its earnings for release tomorrow morning. With the big day approaching, SunTrust Robinson started BABA stock out with a "buy" rating, and set a price target of $175. It's been a stellar year for Alibaba stock, which has added over 80% year-to-date and has outperformed the broader S&P 500 Index (SPX) by almost 23 percentage points during the past three months. Most analysts remain overwhelmingly bullish on the security. All 16 brokerages covering Alibaba rate it a "buy" or better.
 

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