Wells Fargo Predicts New Record Highs for FAANG Stock

The brokerage firm set its NFLX price target at $230

Sep 27, 2017 at 10:02 AM
facebook twitter linkedin


Analysts are weighing in on tech company Micron Technology, Inc. (NASDAQ:MU), luxury retailer Michael Kors Holdings Ltd (NYSE:KORS), and online streaming entertainment concern Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's bullish brokerage notes on shares of MU, KORS, and NFLX.

Micron Showered With Price-Target Hikes Post-Earnings 

Micron Technology has received no fewer than nine price-target boosts after reporting better-than-expected third-quarter earnings, and issuing a strong forecast for the current quarter. Some of the loftiest target revisions came from Needham (to $76 from $50), Stifel (to $64 from $62), and Susquehanna (to $54 from $50). MU is up 5.6% at $36.10 this morning, trading just below last week's fresh 15-year high of $36.60.

Just like MU options traders, analysts were already showing heightened optimism towards the semiconductor stock ahead of last night's well-received earnings report. Currently, 17 out of 18 analysts call Micron shares a "strong buy" or "buy."

KORS Scores Another Bullish Brokerage Note

Canaccord Genuity upgraded KORS to "buy" from "hold" before the bell this morning, along with a price-target increase to $58 from $43. The bullish analyst notes are adding up fast for KORS; today's nod comes just one day after Wells Fargo issued its own price-target hike to $49 from $47. The luxury stock is up 2.2% at $48.05, setting a new year-to-date high in the process.

Despite the strong price action, options traders aren't exactly rushing into bullish bets on KORS. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KORS stock sports a 50-day put/call volume ratio of 1.83, which ranks in the 96th percentile of its annual range. This suggests options traders have rarely shown a stronger preference for puts over calls in the past year.

Wells Fargo, Options Traders Eye New NFLX Highs

Wells Fargo initiated coverage on NFLX with an "outperform" rating and $230 price target -- implying expected upside of more than 28% from last night's close at $179.38. Additionally, this price target stands about 20% above the stock's July 21 record high of $191.50. At last glance, the FAANG stock is up 1.8% at $182.54, extending this week's bounce from its 50-day moving average.

At the ISE, CBOE, and PHLX, Netflix stock carries a 10-day call/put volume ratio of 1.41, which ranks in the 85th annual percentile. This indicates that calls have been bought to open over puts at a faster-than-usual clip -- and, just like Wells Fargo, some of those speculators are banking on new record highs for NFLX.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners