Shares of biotechnology firm
Celgene Corp. (NASDAQ: CELG )
and memory chip maker
SanDisk Corp. (NASDAQ: SNDK )
are outperforming the broader market losses on Monday after
analysts upgraded the companies to "buy." UBS upgraded SNDK to
"buy" from "neutral" and Morgan Joseph upgraded CELG to "buy" from
CELG's Revlimid treatment was the basis for its upgrade. Morgan
Joseph said it expects strong operating performance of the drug,
strong valuation, and a lower probability of any major acquisitions
going forward. Morgan Joseph also set a price target at $66. CELG
shares dropped 36 cents to $50.82 during morning trading. The stock
reached a 52-week high of around $65 in March, and it looks like
Morgan Joseph analysts expect new highs in the stock. CELG has not
announced its next earnings release date, but the market expects
the report around July 29. Analysts polled at Thomson Reuters
estimate earnings of 66 cents per share.
Ahead of the opening bell on Monday, UBS upgraded SNDK to "buy"
from "neutral" and increased its price target to $55 from $46. UBS
said its upgrade was based on better-than-expected application
service trends, strong Smartphone and consumer handheld design,
modest expansion to support growth, and potential royalty upside
due to Samsung NAND sales. The upgrade appears to have affected the
stock positively, as SNDK shares gained more than 4%, or $1.99, to
$44.89 during morning trading. SNDK has not confirmed its
next earnings release, but the market expects the report around
July 22 (analysts anticipate earnings of 89 cents a share).
Investors interested in a moderately bullish way to play SNDK's
upgrade and expect the stock to experience limited downside could
consider a bull put spread ONN.tv highlighted this morning.