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Syndax Pharmaceuticals, L Brands, Shake Shack Upgraded

While LB shares are higher after earnings, SHAK stock looks set to capitalize on positive Wedbush attention

May 18, 2017 at 9:20 AM
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Analysts are weighing in on biotech Syndax Pharmaceuticals Inc (NASDAQ:SNDX), retail stock L Brands Inc (NYSE:LB), and burger chain Shake Shack Inc (NYSE:SHAK). Here's a quick roundup of today's bullish brokerage notes on shares of SNDX, LB, and SHAK.

SNDX Stock Surge Set to Continue

On Wednesday, SNDX stock surged more than 44% on upbeat cancer treatment data. In response, Citigroup raised its price target on Syndax Pharmaceuticals to $24 from $20 -- representing expected upside of 77% to last night's close at $13.58, and a move into uncharted territory. The security is up almost 9% in electronic trading, and it looks like short sellers got out just in time. Short interest plunged 12% in the most recent reporting period, and these bearish bets now account for just 3% of SNDX stock's available float.

LB Stock Set to Buck Bearish Retail Bias

Despite reporting a 9% slump in same-store sales, Victoria's Secret parent L Brands raised its full-year earnings guidance. This may be what prompted J.P. Morgan Securities to raise its price-target on LB stock to $54 from $50 -- nearly 12% premium to Wednesday's settlement at $48.40. Whatever the motive, L Brands stock is trading 6.4% higher ahead of the bell, on track to buck the recent bearish post-earnings trend seen among its sector peers. LB options were hot ahead of earnings, too, with 12,829 puts and 10,161 calls traded yesterday, four times the average daily rate.

SHAK Stock Upgraded at Wedbush

Wedbush raised its rating on SHAK stock to "outperform" from "neutral" and its price target to $43 from $33 -- territory not seen since December 2015. The brokerage firm said Shake Shack valuation is "attractive at current levels," given its impressive growth trajectory. After closing last night at $36.65, SHAK shares have jumped 1.8% in pre-market trading. And with support in place at the equity's year-to-date breakeven mark and 10-day moving average, some of the weaker bearish hands may be ready to call it a day. Short interest accounts for almost half of SHAK's available float, or 15.2 times its average daily pace of trading.

 

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