Analyst Update: Delta, Galapagos NV, Sierra Wireless

Analysts adjusted their ratings and price targets on Delta Air Lines, Inc. (DAL), Galapagos NV (GLPG), and Sierra Wireless, Inc. (USA) (SWIR)

Josh Selway

Jun 8, 2015 at 2:05 PM

Analysts are weighing in today on airline operator Delta Air Lines, Inc. (NYSE:DAL), biotech stock Galapagos NV (ADR) (NASDAQ:GLPG), and telecommunications specialist Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). Here's a quick look at today's brokerage notes on DAL, GLPG, and SWIR.

DAL has followed its sector peers into the red today, giving back 5.1% at $40.72. Aside from the sector-wide slide -- as well as an attack against U.S. aviation policies from the CEO of Qatar Airways -- a downgrade to "outperform" at Raymond James is putting pressure on the shares. The stock has been moving lower for a while now, losing 20% since its all-time high of $51.06 on Jan. 23. Even so, call buying has been the go-to strategy for DAL option players. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio lands at 6.89, meaning almost seven calls have been bought to open for each put. Plus, this ratio is only 3 percentage points from an annual bullish extreme.

GLPG has been on a ridiculous run. Year-to-date, the shares have tripled, and today were last seen 6.6% higher at $55.53. Moreover, the stock just hit an all-time high of $59.19 on June 1, thanks to some strong bounces off its 10-day moving average. This stellar technical performance has brought on a fresh wave of bullish analyst attention, with Morgan Stanley, Cowen and Company, Credit Suisse, and Nomura all initiating coverage on Galapagos NV with the equivalent of a "buy" rating.

Last night, Canaccord Genuity cut its price target on SWIR to $44 from $50, but kept its "buy" rating intact. Nevertheless, the security is 5.1% lower today at $27.18, continuing its downward trend on the charts. The stock hit an almost 14-year high of $49.13 on Dec. 31, but has given back 44.7% since then. All of this has made short sellers very happy. Currently, over 14% of Sierra Wireless, Inc.'s (USA) float is sold short, representing 6.3 sessions' worth of trading, at its normal daily volumes.

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