Pre-iPhone volatility expectations are elevated on Apple stock
Analysts are weighing in on Jeep parent Fiat Chrysler Automobiles NV (NYSE:FCAU), online review platform Yelp Inc (NYSE:YELP), and iPhone maker Apple Inc. (NASDAQ:AAPL). Here's a quick roundup of today's bullish brokerage notes on shares of FCAU, YELP, and AAPL.
Barclays Upgrades FCAU Stock to "Overweight"
Fiat Chrysler shares are up 5% in electronic trading -- set to open at a record high -- after Barclays upgraded its outlook to "overweight" from "equal weight." Today's projected price move would be more of the same for a stock that's surged nearly 71% year-to-date, based on last night's close at $15.53. A round of short-covering could keep FCAU's rally going, too. At the equity's average pace of trading, it would take more than six sessions to cover the 31.32 million FCAU shares that are currently sold short.
KeyBanc Targets Multi-Year Highs for Yelp
KeyBanc raised its price target on Yelp to $54 from $50, representing expected upside of 25.5% to last night's close at $43.04, and a move into territory not seen since February 2015. As a point of comparison, the average 12-month price target on YELP stock is docked at $39.76. With the shares putting the $40 mark comfortably behind them following an early August bull gap -- and sitting on an impressive 12.9% year-to-date advance -- more bullish brokerage notes could come down the pike.
AAPL Stock Price Target Raised Ahead of iPhone 8 Event
Apple stock saw its price target raised to $185 from $175 at Nomura Instinet ahead of next Tuesday's
iPhone 8 reveal. The brokerage firm waxed optimistic on demand for the new phone, and said it should be "cool enough to sell at ~$1,000." AAPL shares closed Tuesday at $162.08, up 39.9% on the year and not far from their Sept. 1 record high of $164.94. With Apple shares up 0.4% in pre-market trading, another new high isn't out of the question.
And with anticipation on the rise ahead of next week's event, so too are volatility expectations. AAPL's 30-day at-the-money implied volatility settled last night at 24.4% -- in the 88th percentile of its annual range, meaning it's relatively expensive to buy premium on the stock's short-term options at the moment.