Analyst: This FAANG Stock Can Surge 34%

FireEye stock's impressive price action could translate into more bullish brokerage notes

Karee Venema
Sep 7, 2017 at 9:51 AM
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Analysts are weighing in on cybersecurity stock FireEye Inc (NASDAQ:FEYE), cancer treatment specialist Juno Therapeutics Inc (NASDAQ:JUNO), and Whole Foods parent Amazon.com, Inc. (NASDAQ:AMZN). Here's a quick roundup of today's bullish brokerage notes on shares of FEYE, JUNO, and AMZN.

FEYE Stock Upgraded at Morgan Stanley

Morgan Stanley upgraded FireEye stock to "overweight" from "equal weight," and raised its price target by $6 to $19 -- representing expected upside of 28.6% to last night's close at $14.78, and a move into territory not seen since January 2016. In response, FEYE shares are up 7.6% at $15.90, putting them back above their 50-day moving average. This trendline served as support in July, but kept a lid on the shares last month. Nevertheless, today's surge could encourage more analysts to upgrade the shares. As of Wednesday's close, 16 of the 21 brokerages covering the security maintained a "hold" rating.

Barclays Starts JUNO Stock with an "Overweight" Rating

Barclays chimed in on drug stocks today, initiating coverage on the U.S. small- and mid-cap biotech sector with a "positive" rating. For Juno Therapeutics, specifically, the brokerage firm started the stock with an "overweight" rating. This is just the latest in a string of positive analyst notes JUNO stock has received since a late-August bull gap, and has the security trading 0.8% higher at $41.73. 

Since taking a sharp bounce off its 80-day moving average on Aug. 18, the equity has surged nearly 55% -- putting it within striking distance of its Aug. 29 14-month high of $44.60. Short sellers have been getting crushed, too, with nearly 26% of the stock's float comprised of these bearish bets. A round of short-covering could spark more upside for JUNO, considering it would take nearly three weeks to cover, at the average pace of trading.

D.A. Davidson Sets a Record-High Price Target on AMZN Stock

D.A. Davidson started coverage on Amazon with a "buy" rating and $1,300 price target -- saying the company could gain even more market share after its recent Whole Foods Market purchase. This new AMZN price target sits 33.5% above its current perch at $973.50. Additionally, Amazon is searching for a location to build its second North American headquarter, a roughly $5 billion project.

Today's bounce helps the stock extend its recent bounce off the $940 region -- home to a 38.2% Fibonacci retracement of its November-to-July surge. Considering it's one of the best stocks to own in September, too, those looking to bet on even more short-term upside with AMZN options can currently do so at relatively attractive levels. The stock's Schaeffer's Volatility Index (SVI) of 17% ranks in the 13th annual percentile, indicating low volatility expectations are being priced into near-term options.


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