Chinese Tech Stock Joins U.S. Sell-Off

Habit Restaurants is set for its best close in months

Jul 30, 2018 at 1:43 PM
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The U.S. stock market is in decline today, led by another huge pullback in the tech sector. Three names in particular traders should watch are hamburger enthusiast Habit Restaurants Inc (NASDAQ:HABT), dermatology expert Sienna Biopharmaceuticals Inc (NASDAQ:SNNA), and Chinese video sharing platform Bilibili Inc (NASDAQ:BILI). We'll take a closer look at shares of HABT, SNNA, and BILI below.

Wedbush is Buying HABT Stock Before Earnings

Ahead of the company's earnings release this Wednesday, Aug. 1, HABT shares are rallying 11.9% to trade at $12.65, putting them on pace for their highest close since Oct. 18. Sparking the massive move is an upgrade to "outperform" from "neutral" at Wedbush, which also raised its price target to $15 from $10, saying it expects the company to exceed same-store sales and margin expectations through 2019.

This is a rare nod of confidence out of the analyst community, since just two of seven brokerage firms in coverage recommend buying Habit Restaurants. Wedbush is especially ambitious to make the bullish call ahead of earnings, given the stock's recent post-earnings history. Specifically, the shares have suffered double-digit percentage losses the day after earnings in three of the past four quarters.

SNNA Stock Slides on Trial Failures

SNNA stock is down 5.1% at $14.90, after the company's lead acne drug failed to meet its primary goals in two studies, and it appears likely to also fail a third study. The shares have actually pared most of their losses, sliding to as low as $12.77 earlier -- a record low. Sienna Biopharmaceuticals has been mostly been trending lower since peaking near $30 last August, and more downside could be on the way if analysts begin to throw in the towel. All three brokerage firms tracking the drugmaker had "buy" ratings coming into today, and the average 12-month price target stood all the way up at $37.50. Cowen and Company actually reduced its price target this morning, but even its revised target of $45 represents a significant premium to current levels.

BILI Shares Slide as App Gets Pulled

BILI shares have fallen 3.9% today to trade at $11.66, after the company said its app had been temporarily removed from certain app stores in China as part of a nationwide inspection on online content. Bilibili began trading publicly in the U.S. back in March, eventually trading as high as $22.70 in mid-June, but today the shares are set for their lowest close since May, and a sixth straight loss. As such, analysts may be rethinking their stance on this stock, as well, since 80% in coverage recommend it as a "buy" and the average 12-month price target is $16.15.


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