A day after the second presidential debate, stocks rose on speculation that the Organization of Petroleum Exporting Countries will move to limit oil production, sparking a rally in the energy sector.
The S&P 500 Index gained 0.46%, while the Dow Jones Industrial Average advanced 0.49%. The Nasdaq Composite closed higher by 0.69%
On a strong day for U.S. equities, Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), Mylan NV (NYSE:MYL) and Tesaro Inc (NASDAQ:TSRO) were three of Monday’s stud performers.
Alphabet Inc (GOOG)
Shares of Google parent Alphabet Inc climbed 1.6% following some bullish analyst commentary on the largest internet search provider.
Axiom Capital’s Victor Anthony reiterated a “buy” rating on GOOG while boosting his price target on the stock to $1,000 from $990. The analyst said he expects GOOG to beat estimates when it reports third-quarter earnings on Oct. 27:
“It is well understood that the Google segment is facing a tough comp due to the launch of the third search link on mobile in 3Q15. We are estimating a 430bps deceleration in 3Q16 vs. 2Q16 – consensus ranges from 300bps to 450bps.”
Mylan NV (MYL)
Embattled specialty pharmaceuticals maker Mylan surged 8.1% on more than double the average daily volume after the unveiling of a settlement with the Department of Justice related to alleged overpricing of its EpiPen allergic reaction treatment.
MYL said it is settling with DOJ for $465 million to resolve charges the company overcharged the U.S. government for several years for the treatment. Shares of MYL recently tumbled after the company’s planned price hike for EpiPen was publicly derided by patients and politicians.
Last Friday, MYL reported that it is being investigated by the Securities and Exchange Commission. The company is also being investigated by the New York Attorney General.
JPMorgan analyst Chris Schott reiterated an “overweight” rating on Mylan today.
TESARO Inc (TSRO)
Shares of biotech firm Tesaro Inc jumped almost 19% on about five times the usual volume after the company revealed positive results in a trial for its experimental drug for ovarian cancer.
Not only did news of the encouraging trial results spark a rally in TSRO, the news stoked bullish moves in the analyst community while prompting some takeover chatter.
For example, Credit Suisse analyst Alethia Young raised her price target on TSRO to $122 from $90, with the new price target being slightly above today’s closing price.
In a note posted by Barron’s, the analyst said “M&A remains in focus for Tesaro,” noting that “M&A DCF valuations range from $122 to $157 by our model.”
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
