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Analyst Upgrades: Synergy Pharmaceuticals, Skechers, Zynga

Analysts upwardly revised their ratings and price targets on Synergy Pharmaceuticals Inc (SGYP), Skechers USA Inc (SKX), and Zynga Inc (ZNGA)

Dec 23, 2016 at 10:02 AM
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Analysts are weighing in on drugmaker Synergy Pharmaceuticals Inc (NASDAQ:SGYP), shoe stock Skechers USA Inc (NYSE:SKX), and mobile gaming specialist Zynga Inc (NASDAQ:ZNGA). Here's a quick roundup of today's bullish brokerage notes on SGYP, SKX, and ZNGA.

  • SGYP is up 9% at $5.17 after the company announced positive results in a phase 3 trial of its irritable bowel syndrome treatment, plecanatide. As a result, Rodman & Renshaw raised its price target by $1 to $17, while BTIG reiterated its "buy" rating and called out Synergy Pharmaceuticals Inc as a potential takeover target, saying, "We remain positive on SGYP shares, and believe larger pharma companies could see value in acquiring the Co. for plecanatide." Despite a nearly 10% year-to-date loss, SGYP has been enjoying solid support from its 160-day moving average in recent months. But today's action could have short sellers continuing their rush to the exits. These bearish bets fell by more than 15% during the most recent reporting period, but still account for 16% of the stock's available float, or more than two weeks' worth of buying power, at SGYP's average daily volume.

  • An upgrade to "buy" from "neutral" at Monness Crespi Hardt has SKX up 2.3% at $24.60, paring its 2016 losses to 18.6%. The stock's most recent rally attempt was rejected earlier this month at the 50-week moving average -- a trendline that has kept the shares' gains in check for more than a year. Nonetheless, SKX calls continue to be popular among near-term options traders, per Skechers USA Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.52 -- lower than 90% of the past year's readings.

  • ZNGA is 1.6% higher at $2.60 after Mizuho initiated coverage on the stock with an upbeat "buy" rating and $3.50 price target -- representing a level the shares haven't seen since 2014. The stock could be due for a bounce, with its 14-day Relative Strength Index (RSI) of 30 just touching oversold territory. But options traders aren't holding their collective breath. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Zynga Inc's 10-day put/call volume ratio of 1.21 ranks in the bearishly skewed 89th percentile of its annual range.
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