Stocks rallied on Thursday with the S&P notching its best session since March with the S&P and Nasdaq both closing up over 1.7%. Asia markets closed higher overnight while Europe indexes are in the green this morning., U.S. futures are pointing higher, the Dollar, Yields, and Oil are higher while Gold is lower.
And this is what UPB is reading this morning: Friday Morning Reads
Stocks gapped higher at the open yesterday, and padded their gains throughout the session. Breadth was strong and certainly bodes well heading into next week where we start seeing some of the tech earnings. The SPY is also back above the 50dma. If markets hold their gains into the weekend, will set things up for more highs next week:
TWLO gapped higher yesterday, breaking over $360 and its 200dma, before finding some pressure into the close to finish at $357.46. I was able to close some more of my calls for 500% and held the rest into today. Will likely look to close them out before noon and revisit:
SSYS closed up for the 8th session in a row and is nearing another breakout level above $28. It also received a positive analyst initiation this morning. My calls are not moving up as much as I would have hoped so still mulling the possibility of closing my Nov strikes out and looking for closer date calls to help with the risk/reward:
ABMD reports earnings two weeks from yesterday. Still eyeing some calls to play for premium build before the report. Think the stock can test that $370+ level where I will lock some in and hold the rest for the report. Spreads make it a tough entry... eyeing the $420 Nov strikes or even the Dec $430 strikes:
TREE closed above that $150 resistance yesterday and the $158 50dma looks like the next target. Another name reporting on the 28th and may look to add more calls here today as my Oct strikes will be expiring. As I mentioned earlier this week, the 'Buy now, Pay Later' craze should only put more eyes on TREE in the coming weeks as the OG platform:
ICPT broke into the $18s before pulling back to close at $17.78. Calls expire today. Will be eyeing some later dated strikes:
Ditto with TRIP:
Also may look at some spec trades today in: SPOT, DPZ, CMG, WING, SHW, BLK, and GS.
Here are the analyst changes of note for today:
|UnitedHealth price target raised to $480 from $360 at Evercore ISI|
|Evercore ISI analyst Michael Newshel raised the firm's price target on UnitedHealth to $480 from $360 and keeps an Outperform rating on the shares after the company's Q3 earnings report and initial commentary on 2022 that "met expectations." Management said consensus EPS for FY22 of $21.64 is "reasonable," but toward the upper end of the likely initial range, which Newshel sees suggesting that initial EPS guidance at its investor day at the end of November will be in the zone of $21.25-$21.75, he tells investors. His EPS estimate for 2022 is $21.60 and his is setting his 2023 EPS forecast at $24.90, the analyst added|
|National Vision price target raised to $70 from $63 at Jefferies|
|Jefferies analyst Stephanie Wissink raised the firm's price target on National Vision to $70 from $63 and keeps a Buy rating on the shares as she updating her model ahead of the company's Q3 report to better reflect the continued momentum in the business that she saw being validated by positive trends in the firm's foot traffic tracker. A combination of traffic, share gains and confidence in execution lead her to apply a higher multiple to her FY22 EBITDA estimate to arrive at her increased price target, Wissink noted|
|Domino's Pizza price target raised to $525 from $515 at MKM Partners|
|MKM Partners analyst Brett Levy raised the firm's price target on Domino's Pizza to $525 from $515 but keeps a Neutral rating on the shares after its Q3 results. The company's domestic streak has been "snapped" by the near-term challenges that included reduced stimulus and limited operations due to labor shortages as well as tough comps, but its long-term global retail sales drivers "remain in full force", the analyst tells investors in a research note. Levy adds that his higher price target reflects his greater comfort in the company's potential to expand its footprint|
|GrowGeneration price target lowered to $35 from $55 at Craig-Hallum|
|Craig-Hallum analyst Eric Des Lauriers lowered the firm's price target on GrowGeneration to $35 from $55 and keeps a Buy rating on the shares. The announcement of the HGS agreement termination and preannouncement of Q3 numbers below consensus, while difficult, resets expectations for 2H and 2022, strengthens the balance sheet and allows for higher-ROI greenfield expansions in northeast states that face little-to-no seasonality, Des Lauriers tells investors in a research note|
|Northland expects Seagate to report 'strong quarter'|
|Northland analyst Gus Richard said he is "comfortable" with his "slightly above consensus" estimates for Seagate's second half of calendar 2021 and that he expects the company to report a "strong quarter." He believes supply and demand have come back into balance after 10 years of excess capacity, added the analyst, who reiterates an Outperform rating and $106 price target on Seagate shares|
|Virgin Galactic flight delay not significant to long-term plans, says Canaccord|
|Canaccord analyst Ken Herbert does not view the Virgin Galactic swap of Unity 23 from before the maintenance phase to after to be significant for Virgin's long time-horizon space tourism plans. The analyst said it will raise VSS Unity's flight readiness to every 4-5 weeks and VMS Eve's endurance to ~100 flights and the company's competitor, Blue Origin, only expects to conduct seven additional flights (at most 28 humans) between now and 2023, ultimately having a negligible impact on the outstanding customer TAM for suborbital space tourism. Herbert maintains his Buy rating and $48 price target on Virgin Galactic shares|
|JPMorgan sees 'valuation disconnect' in shares of BioMarin|
|JPMorgan analyst Cory Kasimov believes it is time to revisit the risk/reward proposition in BioMarin. The recent European Union approval of Voxzogo further reinforces the view of a "valuation disconnect" in the shares, Kasimov tells investors in a research note. The analyst remain bullish on BioMarin's near-to-medium term outlook "ahead of ample catalysts" and keeps an Overweight rating on the name with a $129 price target|
|Plug Power price target raised to $43 from $40 at Morgan Stanley|
|Morgan Stanley analyst Stephen Byrd, who had upgraded Plug Power to Overweight from Equal Weight on October 13 ahead of the company's investor day meeting, has now raised the firm's price target further to $43 from $40 following what he calls "a strong update" during the event. Plug Power provided a "very constructive" update at its investor day yesterday, as he expected, including an increase to its 2022 outlook and issuance of stronger-than-expected 2025 guidance, said Byrd. He views Plug additional partnerships and acquisitions as "a key competitive advantage" as the company continues to gain scale and integrate vertically, Byrd added|
|Alcoa price target raised to $52 from $51 at B. Riley|
|B. Riley analyst Lucas Pipes raised the firm's price target on Alcoa to $52 from $51 and keeps a Neutral rating on the shares post the Q3 results. Alcoa reported a "solid" quarter and management noted that it increased its share buyback program by $500M, bringing the fully authorized total to $650M, Pipes says|
And here is what I am watching today: ABMD, TREE, TRIP, ICPT, TWLO, SSYS, SPOT, DPZ, CMG, WING, SHW, BLK, and GS.
Let's have a great day!