One Analyst's Big Bull Case Boosts Apple Stock Ahead of iPhone Reveal

By Karee Venema / September 12, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on iPhone maker Apple Inc. (NASDAQ:AAPL), aluminum stock Alcoa Corp (NYSE:AA), and streaming name Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's bullish brokerage notes on shares of AAPL, AA, and NFLX.

Morgan Stanley Raises the Bull Case for AAPL Stock

Apple stock is up 0.7% ahead of the bell, after an analyst at Morgan Stanley raised the bull case for Apple stock to $253 from $203 ahead of today's big iPhone event today -- saying the company is "clearly in the lead" over other big-cap tech firms, like Google and Amazon. The highest Apple shares have ever traded was $164.94 -- hit on Sept. 1 -- and they closed last night at $161.50. Based on this price, a move to $253 would require a nearly 57% surge in the tech shares.

With Apple stock up 56.6% year-over-year, analysts are already optimistic ahead of today's iPhone reveal, with 25 maintaining a "buy" or better rating. However, with seven brokerages rating the shares a "hold" or worse, there's room for more bullish brokerage notes to come down the pike.

Deutsche Bank Upgrades Alcoa Stock to "Buy"

Alcoa shares are 2.3% higher in electronic trading, after Deustche Bank raised its rating on the stock to "buy" from "hold" and its price target to $60 from $44. The brokerage firm cited China's recent cuts to aluminum capacity, and said AA is one of its top picks in the sector. This new Alcoa price target stands at a 37.6% premium to last night's close at $43.60.

With AA shares already up 55.3% year-to-date, more price-target hikes could be on the horizon, too. At last night's close, the average 12-month price target stood at $44.33.

Sentiment Grows Bullish on NFLX Stock

Guggenheim raised its price target on Netflix to $210 from $190, with the brokerage firm waxing optimistic on growth potential in Asia. This fresh target sits almost 16% above Monday's close at $181.74, and is well above NFLX's record high of $191.50 from July 21. In reaction, NFLX stock is up 0.3% in pre-market trading, on track to add to its 46.8% year-to-date gain.

Netflix options traders have been shifting to the bullish side in recent weeks, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 1.35 ranks in the 73rd annual percentile -- meaning calls have been bought to open over puts at a faster-than-usual clip.

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