Analysts Take Aim at Wall Street Newbie Roku Stock

AIMT shares are on the rise after DBV Technologies' peanut allergy drug failed in a late-stage study

Oct 23, 2017 at 9:39 AM
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Analysts are weighing in on video streaming service maker Roku Inc (NASDAQ:ROKU), semiconductor stock NVIDIA Corporation (NASDAQ:NVDA), and biotech Aimmune Therapeutics Inc (NASDAQ:AIMT). Here's a quick roundup of today's bullish brokerage notes on shares of ROKU, NVDA, and AIMT.

Analysts Begin Coverage on Roku Stock

Roku stock is trading fractionally lower at $21.80, despite news that Needham initiated coverage with a "buy" rating and set its price target at $28, deeming it a pure play on the growth of "over the top" video. Citigroup, RBC, and Oppenheimer all began coverage, as well, with respective ratings of "neutral," "sector perform," and "perform."

ROKU shares hit a peak of $29.80 on Sept. 29 -- their second day of trading -- but have since retreated to the $22-$23 level, home to their 10-day moving average. Options traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX) have favored calls over puts of late, however. The stock's 10-day call/put volume ratio stands at 4.34, indicating options players have bought to open more than four calls for every put during the past two weeks.

Analyst Predicts Record Highs For NVIDIA Stock

Another stock receiving bullish analyst attention this morning is NVIDIA, last seen trading 0.5% higher at $197.95, after Jefferies raised its price target to $230 from $180 -- in uncharted territory. The brokerage firm is bullish on the company's datacenter potential. NVDA shares have surged the charts in 2017, up 84.5%, with recent pullbacks contained by their 40- and 50-day moving averages. The security touched an all-time high of $199.59 on Friday, but not all analysts are convinced. Of the 25 analysts following NVDA, 12 still rate it a "hold" or "strong sell."

Aimmune Therapeutics Stock Soars After Rival Drug Fails Key Trial

Aimmune Therapeutics stock is up a whopping 36.4% to trade at $35, hitting an annual high of $37.50 earlier, after rival DBV Technologies' peanut allergy drug failed in a late-stage study. Aimmune Therapeutics is currently developing an oral peanut allergy pill, but an analyst from Credit Suisse believes "the best case scenario for AIMT" could be for DBV Technologies' inferior treatment to make it to market. The brokerage firm upped its price target on AIMT to $45 from $36. Wedbush also raised its price target even further in uncharted territory to $70 from $42.

AIMT shares have been carried by their 10-day moving average since late August. A short squeeze could propel the security even higher. Short interest accounts for 18.7% of the stock's total available float. At the equity's average daily trading volume, it would take three weeks to cover these shorted shares.

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