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Analyst Update: Weyerhaeuser Co, SeaWorld Entertainment Inc, and Gilead Sciences, Inc.

Analysts are weighing in on Weyerhaeuser Co (WY), SeaWorld Entertainment Inc (SEAS), and Gilead Sciences, Inc. (GILD)

Sep 22, 2016 at 2:23 PM
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Analysts are weighing in on real estate investment trust (REIT) Weyerhaeuser Co (NYSE:WY), theme park operator SeaWorld Entertainment Inc (NYSE:SEAS), and biotech stock Gilead Sciences, Inc. (NASDAQ:GILD). Here's a quick roundup of today's brokerage notes on WY, SEAS, and GILD.

  • WY has soared 5.6% to $32.05, thanks to a fresh "buy" rating and $37 price target from Goldman Sachs, which also added Weyerhaeuser Co to its "Americas Conviction" list. Today's pop brings the REIT's year-over-year lead to 16.2%, with the shares breaking out after spending more than a week consolidating around the $30 level. Options traders appear to have low expectations for WY, however. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2,177 WY puts have been bought to open in the past 10 days, compared to just 120 calls. The resulting put/call volume ratio of 18.14 ranks higher than 87% of all readings taken in the past 12 months.
  • SEAS is staging a rebound today, adding 9.4% to $13.44 -- more than closing Tuesday's bear gap, which saw the shares hit an all-time low of $11.77. The rally comes after Citigroup upgraded its rating on SeaWorld Entertainment Inc to "buy" from "neutral," citing the company's decision to suspend its dividend -- which could build funds for capital expenditures, potentially increasing attendance at its amusement parks in coming years. Short sellers could be feeling the heat. At present, nearly one-quarter of SEAS' available float is wrapped up in short interest, representing over two weeks' worth of buying power, at the stock's average daily volumes.
  • GILD is sitting out the day's broad-market rally, slipping 0.3% to $81.45, even after Berenberg initiated coverage on the stock with an upbeat "buy" rating and a price target of $112 -- a level the shares haven't seen in more than a year. Weighing on the stock is last night's news that Gilead Sciences, Inc. terminated a Phase 2/3 trial of its ulcerative colitis drug, as well as some skeptical comments from Bloomberg regarding the possibility of a buyout bid from Allergan plc Ordinary Shares (NYSE:AGN). GILD got a lift earlier this week amid sector-wide strength in biotechs, but has since resumed its slump, down roughly 23% over the past 12 months -- with its overhead 80-day moving average applying pressure. Considering the stock's technical performance, GILD is surrounded by a surprising amount of optimism. Not only have options traders been particularly call-heavy of late, but more than half of the brokerage firms tracking the equity still call it a "buy" or better, without a single "sell" in sight. 
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