Roku Stock Rockets Higher After First Earnings Release

Overbought Square stock is ready to pull back despite an impressive earnings report

by Josh Selway

Published on Nov 9, 2017 at 9:28 AM
Updated on Nov 9, 2017 at 10:54 AM

Analysts are weighing in on payments processor Square Inc (NYSE:SQ), biopharmaceutical company Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), and TV streaming platform provider Roku Inc (NASDAQ:ROKU). Here's a quick roundup of today's bullish brokerage notes on shares of SQ, ALNY, and ROKU.

Analysts Hike Price Targets on Square Stock After Earnings

Square last night posted better-than-expected third-quarter earnings results and raised its full-year outlook, and a number of analysts have reacted with bull notes. At least eight price-target hikes have come through, the highest of which was $43 at Susquehanna. Still, the stock is set to open 3% lower, after closing Wednesday at $36.17, up nearly 200% over the past year.

A slight pullback may have been in the cards regardless, since SQ shares had a 14-day Relative Strength Index (RSI) of 74 at last night's close, in overbought territory. But if the equity can regain its momentum on the charts, there's potential for more bullish analyst attention in the future, since 12 brokerage firms maintain tepid "hold" ratings.

J.P. Morgan Securities Upgrades Alnylam Pharmaceuticals Stock

Alnylam Pharmaceuticals last night saw its price target increased to $130 from $101 at Morgan Stanley, and this morning, J.P. Morgan Securities upgraded the stock to "overweight" from "neutral" and raised its price target to $162 from $86. ALNY settled Wednesday at $132.33, down from their Nov. 2 all-time high of $147.63, though they're still up 253% this year. Plus, the equity is 3.5% higher ahead of the bell.

More upside could be in store, too, since short sellers are beginning to cover their positions. During the past two reporting periods, these bearish bets fell by 21.4%, but still almost 9% of Alnylam Pharmaceuticals' float is sold short -- or 6.3 times the average daily pace of trading. So there's plenty of room for the short-squeeze to continue.

Roku Stock Set to Surge After First Earnings Report

Roku stock is set to explode 30% this morning, after the company's debut turn in the earnings booth showed strong third-quarter revenue and current-quarter sales guidance. RBC responded with a price-target increase to $28 and Citigroup raised its target to $27. ROKU shares settled last night at $18.84, well below their record high of $29.80 seen on Sept. 29, their second day of trading. Most analysts have taken a wait-and-see approach on the equity, with four of six rating it a "hold."

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