Analyst Upgrades: Valeant Pharma, SCYNEXIS, Urban Outfitters

Analysts upwardly revised their ratings and price targets on Valeant Pharmaceuticals Intl Inc (NYSE:VRX), SCYNEXIS Inc (NASDAQ:SCYX), and Urban Outfitters, Inc. (NASDAQ:URBN)

Karee Venema

Aug 17, 2016 at 9:19 AM

Analysts are weighing in on drugmakers Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and SCYNEXIS Inc (NASDAQ:SCYX), as well as retail stock Urban Outfitters, Inc. (NASDAQ:URBN). Here's a quick roundup of today's bullish brokerage notes on VRX, SCYX, and URBN.

Shares of VRX are up 10% in electronic trading, after Morgan Stanley boosted its rating to "overweight" from "equal weight" -- the first time the stock has received the equivalent of a "buy" recommendation in the past 12 months -- and lifted its price target to $42 from $33. Echoing a similar outlook as Mizuho, the brokerage firm waxed optimistic on Valeant Pharmaceuticals Intl Inc's recent fiscal plan, citing "a clearer vision under new CEO Joe Papa," and saying "that as new management transforms Valeant and reduces debt, VRX's stock multiple can expand." Longer term, though, VRX stock remains a laggard, down 89.4% year-over-year, based on last night's close at $26.60. Short sellers, meanwhile, have been increasing their bearish exposure. Short interest on VRX rose 3.3% in the latest reporting period, and now accounts for nearly 10% of the stock's float.

Guggenheim -- which recently weighed in on this other drug stock -- initiated coverage on SCYX with a "buy" rating and a $15 price target. Not only does this price target sit more than seven times above Tuesday's settlement at $2.06, it also matches the stock's January 2015 record high. Against this backdrop, the shares are more than 18% higher ahead of the bell, on pace to pare a portion of their steep 66.8% year-to-date deficit. Despite these technical struggles, analysts are optimistic toward the stock. The three other brokerage firms covering SCYNEXIS Inc maintain a "buy" or "strong buy" recommendation, while the average 12-month price target stands at a lofty $12.50.

URBN is set to follow in the bullish post-earnings footsteps of fellow retailer Nordstrom, Inc. (NYSE:JWN), with the shares up 12% in electronic trading -- and on track to notch a new annual high out of the gate. Urban Outfitters, Inc. reported an unexpected rise in second-quarter same-store sales, and beat consensus estimates on both the top and bottom line. Additionally, URBN stock has received a bevy of bullish brokerage notes, including an upgrade to "buy" from Evercore ISI, which also raised its price target to $45 from $33. The equity has been rallying hard since hitting a low of $25.04 during the late-June broad-market swoon, up 25%, as of Tuesday's close at $31.24. A continued rise could shake some of the weaker bearish hands loose. Short interest accounts for 10% of URBN's available float, representing a week's worth of pent-up buying demand, at the stock's average pace of trading.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Follow @Schaeffers

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?