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Analyst Update: China Lodging, Limited, Horizon Pharma

Analysts revised their ratings on China Lodging Group, Ltd (ADR) (HTHT), Horizon Pharma PLC (HZNP), and hhgregg, Inc. (HGG)

May 15, 2015 at 1:50 PM
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Analysts are weighing in today on hotelier China Lodging Group, Ltd (ADR) (NASDAQ:HTHT), biotech issue Horizon Pharma PLC (NASDAQ:HZNP), and electronics retailer hhgregg, Inc. (NYSE:HGG). Here's a quick look at today's brokerage notes on HTHT, HZNP, and HGG. 

  • Netflix, Inc. (NASDAQ:NFLX) isn't the only company making headlines out of China. HTHT is among the top percentage gainers on the Nasdaq today, up 19.1% at $24.52, thanks to an upbeat earnings report and subsequent analyst attention. Specifically, HTHT was gifted an upgrade to "overweight" and a price-target boost to $25 from J.P. Morgan Securities. The brokerage said China Lodging Group, Ltd "has done a good job growing its defensive [managed and franchised] business." Today's rally -- which has the stock sitting north of its 200-day moving average for just the second time since early January -- might be taking some option traders off guard. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio sits at 4.67. What's more, the equity's Schaeffer's put/call open interest ratio (SOIR) rests at an annual high of 0.77, indicating that short-term traders haven't been more put-biased during the past year.
  • HZNP is up 2.5% at $29.10, after Jefferies initiated coverage with a "buy" endorsement and a $37 price target -- well into uncharted territory for the shares. So far in 2015, Horizon Pharma PLC has skyrocketed nearly 126%, so it's not entirely surprising to find that all six covering analysts consider the equity a "strong buy." Plus, the stock's average 12-month price target is docked at $37.14, implying expected upside of 27.6% to HZNP's current price.
  • HGG is nearing six-year-low territory, down 10.1% at $4.74, due to an uninspiring turn in the earnings confessional. Adding salt to the stock's wounds, Janney cut its price target on the security to $5 from $7. Prior to today, hhgregg, Inc. wasn't much to write home about. The stock has shed more than 40% over the past year, pressured beneath its 10-month moving average. Meanwhile, short interest accounts for more than a third of HGG's total available float, representing a whopping 34 sessions' worth of pent-up buying demand, at the equity's average pace of trading. Today, however, HGG has been relegated to the short-sale restricted list.
 
 

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