Analysts Hike Targets as Red Hat Rallies Up to Tech-Bubble Highs

By Emma Gilkey / September 26, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on software firm Red Hat Inc (NYSE:RHT), biopharmaceutical company ProQR Therapeutics NV (NASDAQ:PRQR), and Israeli tech concern Tower Semiconductor Ltd. (NASDAQ:TSEM). Here's a quick roundup of today's bullish brokerage notes on shares of RHT, PRQR, and TSEM.

Red Hat Gaps Higher on Earnings, Guidance

Red Hat received no fewer than 10 price-target raises after reporting better-than-expected second-quarter earnings and hiking its fiscal 2018 revenue forecast. Some of the most notable increases came from BMO (to $128 from $107), Stifel (to $125 from $110), and Mizuho (to $125 from $109). At last check, the tech stock was trading up 4.3% at $110.28. Earlier in the session, Red Hat stock topped out at $113.73 -- its highest price since January 2000.

Even ahead of today's earnings-induced bull gap, analysts were strongly optimistic towards the Linux heavyweight. Among the 26 brokerage firms following RHT, 18 carry "buy" or "strong buy" recommendations.

PRQR Shorts Shrug Off Early Price-Target Hike

Leerink raised its PRQR price target to $12 from $10, after the pharma company last night reported successful results from an early stage study of its experimental cystic fibrosis drug. However, PRQR has erased its pre-market gains to turn lower, down 3.5% at $6.22. The shares appear to be working off an overbought condition, with their 14-day Relative Strength Index (RSI) peaking above 71 earlier this month.

Additionally, it's worth mentioning that short sellers have recently taken a keen interest in the stock, and today's price action suggests these bears are firmly in control at the moment. PRQR short interest shot up by nearly 91% in the latest two-week reporting period, and now stands at its highest level since early May.

TSEM Stock Wins Over Another Analyst

Credit Suisse startedcoverage on TSEM with an "outperform" rating and a price target of $36, sending the shares up 1.7% to $29.52. The semiconductor stock reached a 12-year high of $30.54 on Sep. 19, and currently sports a year-over-year gain of 92%.

Bullish analyst endorsements are nothing new for TSEM. All three brokerage firms following the stock currently recommend buying it.

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