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VRX, WDC, PYPL Stocks Upgraded Today

PayPal stock could add to its long-term gains, should short sellers continue to cover their bearish positions

Jun 16, 2017 at 10:42 AM
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Analysts are weighing in on drug stock Valeant Pharmaceuticals Intl Inc (NYSE:VRX), data storage provider Western Digital Corp (NASDAQ:WDC), and digital payments platform Paypal Holdings Inc (NASDAQ:PYPL). Here's a quick roundup of today's bullish brokerage notes on shares of VRX, WDC, and PYPL.

Bad Press Could Be Behind VRX Stock

Cantor Fitzgerald initiated coverage on Valeant stock with an "overweight" rating and $18 price target. The brokerage firm believes the company can lower its debt meaningfully in the years ahead, and that the days of negative press are behind it. VRX shares have been swinging higher since hitting an eight-year low of $8.31 in late April, and were last seen 5.1% higher at $12.74.

More bullish brokerage notes could help buoy the shares even more. As of last night's close, eight of 10 analysts maintain a "hold" or "strong sell" rating on Valeant shares.

Evercore ISI Initiates Coverage on WDC Stock  

Western Digital stock is up 0.6% today at $87.86, after Evercore ISI started coverage with an "outperform" rating and $130 price target -- uncharted territory. The company has also announced it's settled patent litigation with Pendrell. The stock has added almost 89% over the past year amid support from its 80-day moving average, yet five of 24 analysts still maintain a lukewarm "hold" recommendation on Western Digital shares. This leaves the door open for upgrades, which could draw more buyers to WDC's table. 

PYPL Stock Falls Despite Bull Note

PayPal stock is off 0.7% at $51.91, even after SunTrust Robinson raised its price target to $60 from $53. Nevertheless, the shares remain within striking distance of their June 9 all-time high of $55.14, and sport a year-to-date lead of nearly 32%. Amid this longer-term rise, short sellers have been hitting the exits. Specifically, in the last reporting period alone, short interest on PayPal fell by 12.2%. It would still take shorts nearly four sessions to cover the remaining bearish bets, at PYPL's average pace of trading, meaning there's more sideline cash available to fuel future rallies.

 
 

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