Q2 STOCKS TO BUY

Boot Barn's "Game Changer"; SNAP Shares Recover

EVLO got some analyst love, too

Oct 11, 2018 at 1:45 PM
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Stocks are trading sharply lower once again, despite this morning's inflation update. However, three names trading higher are retailer Boot Barn Holdings Inc (NYSE:BOOT), social media concern Snap Inc (NYSE:SNAP), and immune system specialist Evelo Biosciences Inc (NASDAQ:EVLO). Here's what's lifting shares of BOOT, SNAP, and EVLO.

Jefferies Chimes in on Boot Barn

BOOT stock is trading up 6.3% at $26.49, after Jefferies waxed optimistic on the company's private brand expansion, calling it a potential "game changer," and raised its earnings-per-share forecast for 2019. The shares are now up roughly 226% over the past 12 months, and hit a two-year high of $31.53 on Sept. 13.

Long call traders have continued to target the retailer, too. For instance, Boot Barn's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 20.52. What's more, call open interest is four times that of put open interest among options expiring within three months, according to the security's Schaeffer's put/call open interest ratio (SOIR) of 0.25.

SNAP Recovers Despite Price-Target Cut

SNAP shares earlier hit a fresh all-time low of $6.46, but have since reversed to trade up 2% at $6.72. Goldman Sachs this morning cut its price target to $11 from $17, citing the potential for more headwinds because of slowing user growth -- though the note said a "Twitter-like turnaround" is possible.

Short interest has continued to rise, however, up 12.1% in the last two reporting periods. More than 17% of Snap's float is now in the hands or short sellers, representing four days' worth of buying power, based on the average trading volume.

EVLO Shares Turn Higher

EVLO stock was also the recipient of analyst attention this morning, with Morgan Stanley moving its price target up to $30 from $29. The shares have gained 6.2% as a result to trade at $10.68, though this is still well below $16, where they began trading publicly back on May 9. Yesterday they reached the lowest point on record, bottoming at $10.01.

Most other analysts are very bullish, as well. This is evidenced by the fact that the average 12-month price target is $27.

 

 

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