CARR Closes in on Fresh Highs After Analyst Bull Note

The stock is nearing its Jun. 16 all-time high of $47.13

Digital Content Manager
Jun 23, 2021 at 10:16 AM
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Deutsche Bank just initiated coverage on HVAC provider Carrier Global Corp (NYSE:CARR), starting with a "buy" rating, and a $53 price target -- which is a nearly 15% premium to last night's close, and represents a level not yet touched by the equity. The shares are rising on the bull note, up 1.2% at $46.64 at last check. 

Sentiment surrounding CARR has been mostly positive, coming into today, though there could be room for upgrades going forward. Of the 11 in coverage, seven called the stock a "buy" or better, and four said "hold." Meanwhile, the 12-month consensus price target of $51.31 is an 11.3% premium to last night's close. 

An unwinding of pessimism elsewhere could put wind at CARR's back, too. In fact, short interest rose 101.7% in the last two reporting periods to its highest level since February. Plus, the stock sports a 50-day put/call volume ratio of 1.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 94% of readings from the past year, suggesting a healthier-than-usual appetite for long puts of late. 

CARR's climb up the charts since going public in April of 2020 has been nothing short of impressive. The equity has more than doubled in the past 12 months, with a fresh leg of support emerging at the 40-day moving average earlier this year. This trendline captured the stock's May pullback, catapulting it to a record high of $47.13 on Jun. 16. The stock could be ready to ricochet off its 40-day once more, with yesterday's drop falling just short of the trendline. 

Options bulls are already responding to the bull note, with 3,575 calls across the tape so far -- double what's typically seen at this point. The August 38 call is the most popular, followed by the 44 call in the same series, with positions being opened at both. 

For those wanting to speculate on CARR's next move, options could be the way to go. The security's Schaeffer's Volatility Index (SVI) of 23% stands higher than just 1% of  readings from the past year. This means options traders are pricing in extremely low volatility expectations at the moment. 

 

 

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