Analyst Update: Illumina, Perrigo, and VMware

Analysts are weighing in today on healthcare firms Illumina, Inc. (NASDAQ:ILMN) and Perrigo Company plc Ordinary Shares (NYSE:PRGO), as well as virtualization specialist VMware, Inc. (NYSE:VMW). Here's a quick look at today's brokerage notes on ILMN, PRGO, and VMW.

• No fewer than five brokerage firms raised their price target on ILMN, after the firm posted first-quarter earnings that exceeded expectations and forecast yearly profits above analysts' predictions. Drilling down, the loftiest hikes came from Mizuho and Janney -- to $230 and $240, respectively -- which both reiterated their "buy" ratings. At last check, however, the shares of Illumina, Inc. were down 4.5% at $190.33, trimming their year-to-date lead to roughly 3.1%. Looking to the options pits, traders have favored calls over puts lately, as ILMN's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.67 is higher than 99% of all similar readings from the past year. Additionally, ILMN's Schaeffer's put/call open interest ratio (SOIR) of 0.61 is the lowest such reading from the past 12 months, showing that short-term traders have rarely been this call-heavy.         

• The shares of PRGO are 3.7% higher at $199.94, following reports that Mylan NV (NASDAQ:MV) is upping its bid for the firm, after Perrigo Company plc Ordinary Shares rejected Mylan NV's offer of $205 per share. In response, no fewer than four brokerage firms upwardly revised their price targets on PRGO, with the most dramatic lift coming from Guggeinheim, which raised it to $225 while keeping its "buy" rating. Technically speaking, PRGO has spent the past couple of weeks hovering just shy of the aforementioned MYL bid. However, puts have been more popular than usual in the options pits, as PRGO's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.81 stands in the 88th percentile of its annual range. The brokerage bunch is optimistic on the stock, though, as 69% of covering analysts rate it a "strong buy."     

• VMW is enjoying its first positive post-earnings session in over a year, with the shares up 5.4% to $90.04 -- and earlier touching a year-to-date high of $90.10. Additionally, the company said it has increased contract renewals while marketing its newest services to exiting subscribers. Reacting was Raymond James, which raised its price target on VMware, Inc. by $4 to $94 while keeping its "outperform" opinion. On the charts, VMW has been in recovery mode, with the shares up 22.3% from their Jan.29 annual low of $73.65. However, short sellers have been active on the security, as about 10.5% of VMW's available float is sold short. It would take these traders nearly seven sessions to cover their bets, at average trading volumes.