Analyst: Under Armour could 'hit the reset button'
Analysts are weighing in on athleisure stock Under Armour Inc (NYSE:UAA), Oprah-endorsed Weight Watchers International, Inc. (NYSE:WTW), and homemade goods platform Etsy Inc (NASDAQ:ETSY). Here's a quick roundup of today's bullish brokerage notes on shares of UAA, WTW, and ETSY.
Susquehanna Upgrades Under Armour Stock
Under Armour stock was upgraded to "neutral" from "negative" at Susquehanna, sending the stock up 1.2% to trade at $12.17. Analysts said downside risk is limited due to low expectations after Under Armour earnings, as "UAA may have set the bar low enough to allow the company to hit the reset button." Still, Susquehanna cut its price target on UAA to $11 from $15.
UAA shares touched a five-year low of $11.40 yesterday, and have shed 59% year-to-date. Analysts remain overwhelmingly bearish on the apparel stock. Of the 33 brokerages covering UAA, a whopping 30 rate it a "hold" or worse.
WTW Stock Hits Four-Year High After Earnings
Weight Watchers stock is up 11% to trade at $50.01, and earlier notched a new four-year high of $51.27, after the firm reported stronger-than-expected third-quarter earnings. The company also lifted its full-year forecast, and announced that it's testing meal-delivery services. As a result, Craig-Hallum raised its price-target on the stock to $70 from $50 -- a 40% premium to the stock's current perch. Weight Watchers shares have added an impressive 331% year-to-date, and the Oprah-endorsed stock has a history of making outsized moves after earnings.
A short squeeze could push Weight Watchers stock even higher. Short interest increased by 5.5% during the last two reporting periods to 6.25 million shares. This represents a hefty 23% of WTW's total available float, or more than six days' worth of pent-up buying demand, at the equity's average pace of trading.
Etsy's Earnings Beat Prompts A Flurry Of Bullish Analyst Attention
Etsy stock is down 0.3% at $17.09, even after the company reported strong earnings. The upbeat report has resulted in no fewer than four price-target hikes, including to $18 from $15 at Stifel -- in annual-high territory. ETSY shares have added 46% year-to-date, and earlier peaked at $17.60 -- within a chip-shot of their two-year high of $17.90, set on Sept. 14.
Despite the stock's performance, put buying has become more popular lately. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows ETSY with a 10-day put/call volume ratio of 0.53. While this ratio indicates calls outnumber puts on an absolute basis, it ranks in the 82nd percentile of its annual range, pointing to a healthier-than-usual appetite for bearish bets of late. An unwinding of these pessimistic positions could send ETSY stock even higher.