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Earnings Guide Nike, Micron Stocks Higher

Options traders have been very bullish toward Coach stock

Jun 30, 2017 at 9:23 AM
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Analysts are weighing in on athletic apparel giant Nike Inc (NYSE:NKE), upscale accessories designer Coach Inc (NYSE:COH), and semiconductor stock Micron Technology, Inc. (NASDAQ:MU). Here's a quick roundup of today's bullish brokerage notes on shares of NKE, COH, and MU.

Nike Stock Tries to Rally After Earnings

Nike stock is up almost 6% in pre-market trading, after the company reported better-than-expected fiscal fourth-quarter earnings and revenue, while also confirming it'll start selling some of its products on Amazon. Following this, Deutsche Bank and Telsey Advisory raised their respective price targets to $69 and $63, the former of which represents all-time-high territory. 

NKE shares settled at $53.17 yesterday, and today's move would have them breaking out a series of lower highs in recent weeks -- not to mention resistance from the 200-day moving average. Of course, this is all bad news for a number of Nike options traders, who were betting bearishly ahead of earnings. 

Analysts, Options Traders Expect More Upside for COH Stock 

Canaccord Genuity initiated coverage on Coach stock with a "buy" rating and $59 price target. This represents territory not seen in almost three years for the shares, which settled yesterday at $46.86 -- up nearly 34% year-to-date. Options traders seem to be betting on more upside, too. For example, COH stock has a 10-day call/put volume ratio of 4.74 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 90th annual percentile. This means call buying has been much more popular than normal, relative to put buying. 

Earnings Help Micron Stock Stay Hot

Micron stock is pointed 1.9% higher ahead of the open, thanks to a strong showing in the earnings booth. This would mark the third straight quarter the shares have gained in the session after earnings. Plus, a number of brokerage firms have raised their outlooks, including Stifel, which upped its price target to $60 from $47 -- territory not seen since September 2000. Last night, MU settled at $31.47, up 139% in the past 52 weeks. Short sellers are starting to move in, though. During the past two reporting periods, short interest is up 10.8% on Micron. 

 

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