Goldman Analyst Remains Chilly Toward Tesla Stock

Options traders are buying calls on Horizon Pharma stock

Managing Editor
Aug 28, 2017 at 10:13 AM
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Analysts are weighing in on electric car manufacturer Tesla Inc (NASDAQ:TSLA), biopharmaceutical company Horizon Pharma PLC (NASDAQ:HZNP), and electronics company Plexus Corp (NASDAQ:PLXS). Here's a quick roundup of today's brokerage notes on shares of TSLA, HZNP, and PLXS.

Goldman Analyst Remains Icy Toward TSLA

Tesla stock is down 2.1% to trade at $340.71, after Goldman Sachs analyst David Tamberrino said the vehicle maker's next capital increase will likely come in the third quarter -- not the first quarter -- of 2018, which could weigh on earnings. The analyst maintained a "sell" rating and ice-cold $200 price target on TSLA stock -- a steep discount to the shares' current price.

While the stock is off its June 23 record high of $386.99, Tesla has still turned in an impressive year thus far, up 60% year-to-date, with pullbacks contained by its 100-day moving average. Nevertheless, near-term options traders are more put-heavy than usual right now. Tesla's Schaeffer's put/call open interest ratio (SOIR) of 1.53 is at its highest point since July 31, and ranks in the 76th percentile of its annual range.

Analyst Ups Price Target on Horizon Stock

Horizon Pharma stock is up 1.8% to trade at $13.37, after Mizuho raised its price target by 33%, to $12 from $9, though the new target still represents a discount to the shares' current price. Horizon is also likely enjoying some biotech-industry tailwinds today, after Gilead Sciences bought Kite Pharmaceuticals. HZNP stock has been on the road to recovery since its earnings-induced bear-gap in early May. In fact, the drug stock has tacked on 30% in the last three months, and was aided by a solid earnings report earlier this month.

As a result, HZNP call buyers are coming out of the woodwork. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HZNP boasts a 10-day call/put volume ratio of 73.47, which ranks in the 92nd percentile of its annual range.

Upgrade Lifts Plexus Stock 

Plexus stock is up 3.5% to trade at $51.93, after the shares received an upgrade to "overweight" from "neutral" at J.P. Morgan Securities. PLXS stock is now on pace to end atop its 10-day moving average for the first time in a month. Just last week, the stock came dangerously close to new year-to-date lows, and remains 4.3% lower for 2017. 

Today's upgrade is very rare for Plexus shares, as analysts remain firmly entrenched in the bearish camp. All six of the brokerages covering PLXS rate the stock a tepid "hold." 


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