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Analyst Update: Lululemon, FireEye, Monsanto Company

Analysts adjusted their ratings and price targets on Lululemon Athletica inc. (LULU), FireEye Inc (FEYE), and Monsanto Company (MON)

Mar 21, 2016 at 3:19 PM
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Analysts are weighing in on athletic apparel maker Lululemon Athletica inc. (NASDAQ:LULU), cybersecurity stock FireEye Inc (NASDAQ:FEYE), and agriculture interest Monsanto Company (NYSE:MON). Here's a quick roundup of today's brokerage notes on LULU, FEYE, and MON.

  • LULU is 3.3% lower at $60.42, after J.P. Morgan Securities removed the stock from its "U.S. Equity Analyst Focus" list -- while adding a sector peer. Lululemon Athletica inc. is up 15% year-to-date, but unless things turn around quickly, the shares will finish the session beneath their 40-day moving average for the first time since mid-December. Today's negative note is relatively rare for LULU, with 70% of analysts rating the stock a "buy" or better. But this pullback might be just what some traders want -- nearly one-fifth of the equity's available float is sold short, accounting for about 12 days' worth of trading, at LULU's typical daily pace.
  • Goldman Sachs began coverage on the cybersecurity sector, initiating FEYE with a $20 price target and a tepid "neutral" rating. More than half of the analysts following FireEye Inc give it the equivalent of a "hold," but option traders have been eyeing a rally for the stock, which is up 2.3% at $18.79 today. Specifically, FEYE holds a 10-day call/put volume ratio of 4.15 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- higher than 78% of all readings in the last 12 months. FEYE is still down 9.4% in 2016 after hitting a record low of $11.35 last month, but is on track for its first finish above its 20-week moving average since last July.
  • MON is off 1.6% at $91.49, after Berenberg cut its price target on the stock to $110 from $120.  According to Bloomberg, Monsanto Company is in talks with both BASF and Bayer regarding "a range of possible combinations," including partnerships and the purchase of a crop-science business. Analysts are split equally on the stock, but option traders have taken call buying to a new extreme, as MON's 10-day ISE/CBOE/PHLX call/put volume ratio has surged to an annual high of 16.26. 
For other stocks in analysts' crosshairs, read Analyst Upgrades: Tesla Motors Inc, Nike Inc, and Cyberark Software Ltd and Analyst Downgrades: Valeant Pharmaceuticals Intl Inc, Intel Corporation, and Transocean LTD.
 

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