Amplify's Stock Rallies After SunTrust Initiates Coverage With Highest Rating

Amplify Snack Brands Inc.'s stock climbed 1.4% in light premarket trade Monday, after SunTrust Robinson Humphrey initiated research coverage of the maker of SkinnyPop popcorn with its highest buy rating. Analyst William Chappell set an $18 stock price target, which is 35% above Friday's closing price of $13.31, and where the company's initial pubic offering priced earlier this month. "In our opinion, Amplify came up with the right brand (SkinnyPop), for the right category (packaged popcorn), at the right time (accelerated growth for healthy snacking), targeting the right demographic (millennials) at the right price (super-premium)," Chappell wrote in a note to clients. He said at current prices, Amplify's stock is trading at a discount to its peers and other newly-public companies in the healthy foods business. The stock has gained 7.8% over the past three sessions, since closing at its lowest ever price of $12.35--31% below its $18 IPO price--last Tuesday. The closest the stock has traded to its IPO price was $17.20 on its first day, on Aug. 5.