Morgan Stanley raised its price target on RAL to $85 this morning — a 25% jump from its prior $68 — while maintaining an Overweight rating. The stock trades at $69.22. That gap between the new target and current price is the headline story today.
Morgan Stanley's Chris Snyder has now raised his RAL target three times since May. The progression: $45 → $68 → $85. TD Cowen, Citigroup, and Barclays all raised targets in May as well. Every firm held its bullish rating. Not one downgrade in the recent history.
The mean consensus target sits at $68.55 — now below the current price. Morgan Stanley's fresh $85 is well above the pack.
The put/call ratio hit 0.029 on June 23. The 20-day average is 0.38. That's 2.75 standard deviations below the mean — extreme call dominance. For context, the PCR was running above 0.47 for most of early June. Something shifted sharply in the past two sessions.
Bullish options positioning and a Street that keeps raising targets are pointing the same direction.
Shares short fell nearly 20% in a single day to 5.7 million. That continues a broader retreat — short interest is down 17% over the past week. The borrow market is wide open. Availability stands at 3,477% of estimated shorts, meaning roughly 34 shares are available to lend for every one currently borrowed. Cost to borrow is just 0.36%, near multi-month lows despite a week-on-week uptick.
The previous article flagged a one-day SI spike on June 16 as likely noise. That call was right — shorts have since unwound.
Dodge & Cox holds 12.3% of shares. Vanguard Portfolio Management entered with a full 7.6% stake. Irenic Capital added 1.4 million shares last reported period. Point72 added 785,000. The holder base looks engaged.
What to watch: Whether the stock can close the gap to Morgan Stanley's $85 target. The next earnings date is August 11.
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