Analysts Dole Out Love to JUNO; Lululemon Price Target Lifted Ahead of Earnings

Options traders are buying calls on Lululemon stock as earnings approach

Managing Editor
Aug 29, 2017 at 10:08 AM
facebook X logo linkedin


Analysts are weighing in on biotech stock Juno Therapeutics Inc (NASDAQ:JUNO), yoga apparel retailer Lululemon Athletica Inc. (NASDAQ:LULU), and semiconductor stock Mellanox Technologies, Ltd. (NASDAQ:MLNX). Here's a quick roundup of today's brokerage notes on shares of JUNO, LULU, and MLNX.

JUNO Stock Hits New Highs After Upgrades

Juno Therapeutics stock is up 14% to trade at $41.58 -- a new annual high -- after Raymond James and Wedbush both upgraded the biotech stock to "outperform," and hiked their price targets to $45 and $42, respectively. In the wake of Gilead Sciences' deal to buy Kite Pharma -- which resulted in a bull gap for JUNO stock yesterday -- Wedbush believes more positive attention will come to Juno Therapeutics' CAR-T therapies.

JUNO stock has now more than doubled year-to-date. A short squeeze could create even more tailwinds for JUNO stock. The 15.73 million shares of JUNO sold short represent over a quarter of the stock's total available float. It would take over 13 days for the shorts to fully cover their pessimistic positions, at Juno's average pace of trading. 

LULU Stock Gets Price-Target Hike Ahead Of Earnings

Lululemon stock is down 0.7% to trade at $59.70, as a sector swoon for athletic apparel stocks overshadows a price-target hike to $64 from $60 at Susquehanna. Lululemon will report earnings on Thursday, and shareholders are hoping LULU stock can avoid the same fate as many of its sector peers. Since touching an annual low of $47.26 on May 31, LULU has tacked on 24%. 

In the options pits, traders have bought to open LULU calls over puts at an accelerated clip ahead of earnings. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LULU sports a 50-day call/put volume ratio of 2.62, which ranks 4 percentage points from a 52-week high.

Mellanox Stock Gets A 'Buy' Rating, Lofty Price Target 

Mellanox Technologies stock is up 0.9% to trade at $45.60, after Benchmark started coverage of the chip stock with a "buy" rating and a price target of $60. The new target implies expected upside of about 32% from MLNX's current price, and stands in territory not charted in over four years. MLNX stock has tacked on 12% year-to-date, but its 100-day moving average stifled a breakout attempt earlier this year. 

There are plenty of short sellers sniffing around MLNX. Short interest has increased by 6% during the last reporting period, and represents a healthy 7% of the stock's total available float. In fact, it would take over nine days to repurchase all of those pessimistic positions, at MLNX's average daily trading volume. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI