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Analyst Upgrades: Anadarko, Kate Spade & Co, UnitedHealth

Analysts upwardly revised their ratings and price targets on Anadarko Petroleum Corporation (APC), Kate Spade & Co (KATE), and UnitedHealth Group Inc (UNH)

Sep 13, 2016 at 10:20 AM
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Analysts are weighing in on oil-and-gas stock Anadarko Petroleum Corporation (NYSE:APC), accessories designer Kate Spade & Co (NYSE:KATE), and insurance giant UnitedHealth Group Inc (NYSE:UNH). Here's a quick roundup of today's bullish brokerage notes on APC, KATE, and UNH.

  • APC is down 2.4% at $56.40, in the wake of its $2 billion Gulf asset purchase, which will largely be funded by a secondary offering of 35.3 million shares. Failing to give the stock a boost are price-target hikes at RBC (to $70) and Morgan Stanley (to $81). While Anadarko Petroleum Corporation is struggling today, it's been making a series of higher highs and lows since bottoming in January at $28.16 -- doubling in value over that time. Not surprisingly, the analyst community has grown bullish toward the stock, which sports 15 "buy" or better recommendations, compared to five "holds" and just a single "sell" opinion.
  • Wells Fargo upgraded its rating on KATE to "outperform" from "market perform," boosting the stock 3.1% to $18.95. However, the shares have been struggling since their late-April highs north of $26, and are approaching a recent layer of resistance at their 40-day moving average. Accordingly, options traders have been placing bearish bets over bullish at an extreme rate in recent months. Kate Spade & Co's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) registers at an annual high of 1.21.
  • UNH has shed 1.4% at $133.67, despite being named a "top pick" at Jefferies -- which cited confidence in the company's management and an attractive valuation. Separately, UnitedHealth Group Inc's Optum unit announced a partnership with Quest Diagnostics Inc (NYSE:DGX). Technically speaking, UNH is up more than 13% year-to-date, but recently was turned back in the $140-$145 zone after a period of consolidation. As a whole, the brokerage bunch has sky-high expectations for the stock. Sixteen analysts rate UNH a "buy" or better, versus just a single "hold" opinion and one "strong sell."
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