SkyWest, Inc., Lattice Semiconductor, Blue Buffalo Pet Products Inc: Why Are These Stocks Flying High Today?

Shares of Blue Buffalo Pet Products Inc (NASDAQ:BUFF) are up 5.55% in afternoon trading after analysts at Morgan Stanley upgraded the stock to ‘Overweight’ from ‘Equalweight’ and increased their price target to $28.80 from $24. The analysts note that Blue Buffalo’s long term growth potential ‘is far from being priced’ into the valuation and note investor concerns over increased competition is overdone. Because shares are down 27.35% year to date, the analysts believe Blue Buffalo Pet Products’ stock currently offers asymmetric risk reward and is a ‘Top Pick’.

We don’t have any hedge fund data on Blue Buffalo Pet Products Inc (NASDAQ:BUFF) at this point because the company IPOed after the end of the second quarter. We do note, however, that 4.9% of Blue Buffalo Pet Products’ float is short and the company trades at 27 times forward earnings versus the 16.84% next 5 year EPS annual growth rate. At its current valuation, the company can deliver value to shareholders but management will need to execute.

Disclosure: None