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Credit Suisse Targets 55% Upside for Nvidia Stock

Jefferies cited upbeat industry checks to support its new outlook for Macau gaming revenue

Nov 26, 2018 at 3:22 PM
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The U.S. stock market is soaring on Cyber Monday, with the Dow up 275 points at last check. Among individual names making notable moves today are casino Wynn Resorts, Limited (NASDAQ:WYNN), chip designer Nvidia Corporation (NASDAQ:NVDA), and gene therapy specialist Rocket Pharmaceuticals Inc (NASDAQ:RCKT). Here's a quick look at what's moving the shares of WYNN, NVDA, and RCKT.

WYNN Stock Jumps on Jefferies' Upbeat Macau Forecast

Wynn Resorts shares are up 7% to trade at $111.68, after Jefferies upped its November Macau gaming revenue forecast, citing data in recent industry checks that's shown accelerated revenue growth over the past week. This just extends a more volatile-than-usual period for the casino stock, per its 30-day historical volatility of 80% -- in the 96th annual percentile.

Looking closer at the charts, Wynn stock fell to a 21-month low of $92.50 on Oct. 29. While the shares have come off this bottom, two subsequent rally attempts have each stalled in the $110-$112 region, home to their late-October pre-bear gap lows and their 40-day moving average. Since its mid-May peak at $202.48, the equity has shed 45%.

In spite of the stock's longer-term struggles, options bulls have taken a definitive stance toward WYNN. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 3.87 ranks in the 100th annual percentile.

Bearish Traders Blast Nvidia Stock

Credit Suisse initiated coverage on Nvidia stock with an "outperform" rating and $225 price target -- a 55% premium to last Friday's close. The brokerage firm said the equity's recent sell-off creates an "extremely compelling entry point," and mentioned e-sports as one of several potential growth drivers. NVDA shares are up 3.3% to trade at $149.85, but are not far off of last Tuesday's 18-month low of $133.31.

In the wake of the stock's recent death cross, options traders have been buying to open puts relative to calls at a quicker-than-usual clip, per NVDA's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.71 -- in the 71st annual percentile. The skepticism is seen elsewhere, too, with short interest up 14.4% in the two most recent reporting periods.

Rocket Pharmaceuticals Stock Pops on Licensing Deal

Rocket Pharmaceuticals announced a licensing deal with Regenxbio (RGNX) to develop Danon disease treatments. In reaction, RCKT is up 7.9% to trade at $16.27 -- set for its best day since July 10. Since topping out at a 21-month high of $25.96 in mid-September, the shares have lost nearly 38%. Nevertheless, all four covering analysts maintain a "strong buy" rating, while the average 12-month price target sits all the way up at $28. This puts RCKT stock at risk of negative bull notes, should it resume its longer-term downtrend.

 

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