Why Synchronoss Technologies Stock Soared Today
What happened
Shares of Synchronoss Technologies (NASDAQ: SNCR) popped 10.8% Tuesday after Roth Capital analyst Richard Baldry initiated coverage on the cloud-based enterprise computing and messaging specialist with a buy rating. Baldry also assigned a $13-per-share price target on Synchronoss, representing a massive 95% premium from Monday's close of $6.67.
So what
Synchronoss was already having a decent month before this initiation; shares enjoyed a similar single-day leap as the market cheered the company's longer-term growth, sales, and capital-allocation strategies outlined during an investor day almost two weeks ago.
To that end, in a note to clients obtained by TheFly today, Baldry justified his bullishness by pointing to a combination of Synchronoss' "depressed valuation," and its "unique set" of cloud-based products that cater to "important new strategic growth avenues for a broadening set of potential customers."
Now what
That's not to say anything has technically changed apart from Synchronoss' share price. But with the stock trading at a small fraction of its all-time highs set a few years ago, and given this vote of confidence from Wall Street -- in particular the steep rally this analyst is predicting -- it's no surprise to see Synchronoss jumping in response today.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.