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Why Synchronoss Technologies Stock Soared Today

By Steve Symington - Updated Jun 18, 2019 at 4:18PM

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One analyst thinks shares could nearly double from today's prices.

What happened

Shares of Synchronoss Technologies (SNCR -3.42%) 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.

Stock market charts on a colorful display indicating gains.

Image source: Getty Images.

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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Synchronoss Technologies, Inc. Stock Quote
Synchronoss Technologies, Inc.
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