Pfizer is leading the DJIA higher after scoring an upgrade -- and filing suit against J&J
Analysts are weighing in on Dow drug stock Pfizer Inc. (NYSE:PFE), software giant Adobe Systems Incorporated (NASDAQ:ADBE), and sports retailer Hibbett Sports, Inc. (NASDAQ:HIBB). Here's a quick roundup of today's bullish brokerage notes on shares of PFE, ADBE, and HIBB.
Morgan Stanley Shares Optimistic Outlook for PFE Stock
Pfizer received an upgrade to "overweight" from "equal weight" at Morgan Stanley, as well as a price-target boost to $39 from $35. In a note to clients, the brokerage firm noted PFE's appealing valuation and expressed high hopes for its Ibrance breast cancer drug, as well as possible U.S. tax benefits. Separately, PFE today filed suit against fellow Dow component Johnson & Johnson (JNJ) in the U.S. District Court for the Eastern District of Pennsylvania, with PFE accusing JNJ of exclusionary contracts and anti-competitive practices.
PFE is up 1.2% at $35.87, and earlier hit a new annual high of $36.21 -- and options players see more upside ahead. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PFE's 10-day call/put volume ratio of 3.45 ranks in the 88th percentile of its annual range, suggesting options traders are favoring bullish bets over bearish by a wider-than-usual margin.
ADBE Sinks Despite Price-Target Hikes
Following a third-quarter earnings report that topped analysts' forecasts, ADBE has received no fewer than six price-target hikes this morning. The loftiest new target comes courtesy of Jefferies, with a raise to $180 from $175. An impressive 16 of the 20 analysts following the marketing software stock carry "buy" or "strong buy" recommendations.
Despite the earnings beat, however, ADBE is down 4.5% at $149.63, as traders appear disappointed with the company's in-line fourth-quarter revenue forecast. The shares are now trading below support at their 10-week moving average, which hasn't been breached on a weekly closing basis since December.
HIBB Stock Gets Upgraded to "Positive"
Susquehanna upgraded HIBB to "positive" from "neutral," and raised its price target to $17 from $11, with the brokerage firm citing expectations for strong post-hurricane demand. Following this bullish nod, HIBB is trading up 3.4% at $13.60, with the struggling
athletic retailer mounting another challenge of recent resistance around the $14 level.
A constant onslaught of short selling hasn't helped HIBB's case, as the stock tries to snap out of its lengthy downtrend. Short interest ramped up by nearly 21% over the past two reporting periods, and now accounts for a hefty 22.4% of the equity's float.