A Black Friday Winner Seeing Bullish Analyst Attention

A number of analysts also weighed in on Wall Street newbie Funko

Nov 27, 2017 at 9:54 AM
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Analysts are weighing in on online retail platform Shopify Inc (NYSE:SHOP), toymaker Funko Inc (NASDAQ:FNKO), and chip stock Micron Technology, Inc. (NASDAQ:MU). Here's what's moving shares of SHOP, FNKO, and MU.

Shopify Stock Gains are Good News for Options Traders

Shopify stock is up 2.6% this morning at $114.66, after the company announced record-breaking Black Friday numbers. Plus, KeyBanc this morning boosted its price target to $140 from $116, saying the company's machine learning potential is being underestimated. SHOP shares touched a record high of $123.94 in mid-September, and a recent pullback was neatly contained by the 150-day moving average. Overall, the equity is up roughly 161% in 2017.

Today's strong price action is likely being cheered by options traders. Shopify has a 10-day call/put volume ratio of 3.29 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), showing call buying has more than tripled put buying. Moreover, this reading ranks in the bullish 88th annual percentile.

Funko Stocks Rises on Fresh 'Buy' Ratings

Funko stock is flirting with its Nov. 2 record high of $8.60 this morning, last seen 4.3% higher at $8.55, after a round of bullish analyst attention. SunTrust Robinson, BMO, Stifel, J.P. Morgan Securities, and Jefferies all initiated coverage with the equivalent of a "buy" rating, with price targets ranging from $10 to $14. The shares began trading back on Nov. 2 at $8, only to hit an all-time low of $6.94 the same day. However, FNKO has shown newfound strength in recent days, now on pace for a fifth straight win.

Morgan Stanley Sees More Upside for Micron Shares

Micron stock is down 4.1% this morning at $47.66, despite a price-target increase to $55 from $39 at Morgan Stanley -- territory not seen since late 2000. Shareholders -- who've watched the security more than double during the past year -- may be hoping the 20-day moving average contains this pullback as it has for all others since late September. It's likely MU shares were simply due for a breather anyway, since their 14-day Relative Strength Index (RSI) closed Friday at 79, well into overbought territory.

Meanwhile, most analysts share Morgan Stanley's upbeat outlook. Of the 20 brokerage firms tracking Micron, 18 of them say to buy the stock. Moreover, the average 12-month price target is $53.14.


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