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Tahoe Resources Gaps Higher After Escobal Win, Upgrade

ARRY's upside could be contained at a key level of technical resistance

Sep 11, 2017 at 9:28 AM
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Analysts are weighing in on online restaurant delivery service GrubHub Inc (NYSE:GRUB), cancer treatment specialist Array Biopharma Inc (NASDAQ:ARRY), and mining stock Tahoe Resources Inc (NYSE:TAHO). Here's a quick roundup of today's bullish brokerage notes on shares of GRUB, ARRY, and TAHO.

GRUB Stock Gets Mixed Messages from Credit Suisse

GrubHub stock has been flying up the charts since hitting an annual low of $32.43 in early April, up 73% and fresh off last Thursday's record high of $57.61. Nevertheless, Credit Suisse downgraded the shares to "neutral" from "outperform," although the brokerage firm did raise its price target to $53 from $50.

However, this still represents a discount to Friday's close at $56.08 -- and resides in the same ballpark as the stock's average 12-month price target of $52.89. Although GRUB shares are down 1.5% in electronic trading, they could garner more upwardly revised analyst ratings once they resume their longer-term uptrend.

ARRY Stock Gaps After Fresh Round of Price-Target Hikes

Array Biopharma stock is up 8.2% ahead of the bell, after Cantor, Cowen, and Stifel all raised their respective price targets on the stock to $15 -- representing expected upside of nearly 37% to last week's close at $10.98, and territory not seen since early 2002. The shares are up nearly 25% already this year, but have struggled to break out above the $12 mark, including during last Friday's bull gap in the wake of strong late-stage trial results for its colorectal cancer treatment.

A round of short covering could potentially help the stock topple this pesky technical ceiling. Nearly 16% of ARRY's float is sold short, representing 7.2 times the security's average daily pace of trading.

Credit Suisse Raised Its Rating on TAHO Stock

Tahoe Resources stock is set to jump 35.7% out of the gate, after the Guatemalan Supreme Court reinstated a license to the company's subsidiary, Minera San Rafael, for the Escobal mine -- the world's third-largest silver mine. Adding to the bullish bias is an upgrade to "outperform" from "neutral" from Credit Suisse. TAHO shares gapped lower when the license was initially suspended in early July, and hit a record low of $4.24 on Aug. 29. Longer term, TAHO is down 50% year-to-date, closing Friday at $4.70.

Short sellers have been cashing in their winning bets during this decline, too. Since hitting a record high of 10.28 million shares sold short in early May, short interest on the security is down almost 27%.
 

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