Celgene (CELG), SanDisk (SNDK) upgraded to 'buy'

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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 "hold."

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.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Options

Referenced Stocks: CELG , SNDK

Karla Yeh

Karla Yeh

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