U.S. equities rallied hard on Monday following dovish comments on interest rates from the Federal Reserve’s Lael Brainard. Stocks tumbled last Friday after another member of the Fed said the central bank should not wait too long to boost borrowing costs.
The S&P 500 climbed 1.4% while the Dow Jones Industrial Average added 240 points to finish up 1.3%. The Nasdaq Composite advanced nearly 1.7%.
On a banner day for stocks, Pandora Media Inc (NYSE:P), Raptor Pharmaceutical Corp. (NASDAQ:RPTP) and SolarCity Corp (NASDAQ:SCTY) were three of the best.
Pandora Media Inc (P)
Online streaming music provider Pandora Media Inc soared 4.9% on above-average volume following some bullish analyst commentary. Specifically, SunTrust Robinson Humphrey Robert Peck raised his rating on P stock to “buy” from “neutral” with an $18 price target, implying significant upside from current levels.
“Among the catalysts Peck said could help boost the stock are the impending signing of direct deals with music labels, the announcement of new tiered products and the ability to beat low guidance provided by the company,” MarketWatch reported.
P is expecting full year revenue of $1.39 billion to $1.41 billion.
The gains have Pandora stock back near 52-week highs set earlier this month. While Pandora is up only about 6% year-to-date, P shares have rallied some 80% from their February lows.
Raptor Pharmaceutical Corp. (RPTP)
Shares of Raptor Pharmaceutical Corp. jumped 20.5% on more than 40 times the average daily volume on news the company will be acquired by Horizon Pharma PLC (NASDAQ:HZNP).
Horizon — which specializes in arthritis and osteoarthritis — will pay $800 million, or $9 per share, to acquire RPTP. Raptor makes treatments for rare diseases, including chronic pulmonary infection and a rare metabolic disorder.
Wall Street was apparently thrilled with the deal, as traders sent Horizon Pharma shares up more than 9% on the day — welcome news for the biopharma company, which still is off more than 20% year-to-date.
The companies expect the deal will close in the fourth quarter.
SolarCity Corp (SCTY)
Shares of Elon Musk’s SolarCity Corp surged 6.1% on more than double the average daily volume after the company said it raised $305 million in a deal with Quantum Strategic Partners Ltd and advised by George Soros’ hedge fund, Soros Fund Management LLC.
“Monday’s transaction included an 18-year-loan syndicated to five institutional investors,” according to Reuters.
Earlier this year, SCTY obtained $227 million in financing from investment firm John Hancock. SCTY is in the process of being acquired by Musk’s Tesla Motors Inc (NASDAQ:TSLA), but that deal is facing delays.
TSLA also rose on news of the SCTY deal with Soros.
As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.
