These reports, extracted and edited by Barron’s, have recently been published by investment and research companies. The reports are a sample of analysts ’thinking; the opinions or recommendations of Barron’s should not be considered. Some of the issuers of the reports have provided or expect to provide investment services or other services to the companies analyzed.
Strong purchase Price $ 247.02 on May 28th
Boeing has a high risk, due to its 737 MAX problems, the Covid-19 demand shock and the $ 50 billion debt added since 2018. Still, we see a full recovery in demand in 2023, which is likely to lead to a material rise in equities, as many sales-side estimates imply that demand will never fully recover. We value BA in a highly conservative scenario where free cash flow for the remainder of 2021-2022 is negative $ 6 billion (base case: $ 7 billion positive) and profits do not return to their 2018 highs until 2026 (base case: 2024). The market fears that the MAX will never regain its competitive advantage and that there will be a permanent drop in business travel, after Covid, but we disagree. MAX operators already want to buy more of the highly efficient aircraft (224 new orders in the first quarter, compared to 38 for this year)
competing narrow bodies). In addition, record highs in March and April for flights with commercial aircraft from the United States and domestic commercial flights from China suggest that companies are eager to completely resume travel once the risks of Covid-19 dissipate. Our target price is $ 321, still 27% below Boeing’s all-time high.
IAC / InterActiveCorp
Overweight • Price $ 158.07 on June 2nd
of JP Morgan
We are updating our valuation of the sum of the IAC parts and the price target after completing the Vimeo derivation. Now, IAC consists of a majority listed Angi property; a portfolio of proprietary business (the heel), including Dotdash, Care.com, Ask Media Group, Mosaic, Bluecrew, Vivian Health, The Daily Beast and IAC Films. Also included in the heel is the ownership of 25% of the IAC to the private company Turo; minority stake in publicly traded MGM; and $ 2.8 billion in cash, minus $ 397 million in withholding taxes estimated to be paid. If we decline the market value of the positions of the public company IAC and net cash, its share price implies an initial value of $ 2.9 billion, a discount to our estimate of $ 4.7 billion. IAC has several levers to unlock value over time. But we believe it is likely that the IAC ticket will continue to trade at a discount from our estimate of the sum of the shares until we have more clarity around the next catalyst. This makes Angi, one of our best medium-small capital ideas, an important part of our short-term IAC bull thesis. Target Price: $ 200
To buy Price $ 167.06 on June 2nd
by Canaccord Genuity
Etsy has agreed to acquire Depop, the first mobile ecommerce marketplace for fashion items, in a deal valued at $ 1.63 billion. The move expands Etsy’s presence in the fast-growing second-hand clothing category, giving it access to Depop’s highly committed Generation Z consumer base. Now Etsy has three highly differentiated markets. Although it plans to operate each of them autonomously, it aims to take advantage of shared technology, customer service and marketing strategies to increase operational efficiency, using the same game book that it executed with success after the Reverb deal in 2019. Price target: $ 270.
Get over Priced at $ 46.11 on June 1st
for Evercore ISI
We are starting coverage with a higher than overcoming rating and a target price of $ 75. Verint is the category leader in customer interaction. The digital transformation has changed customer service. Today, companies collaborate with customers not only through voice / call centers, but through various points of contact, including email, chat, self-service, user communities, networks. social and e-commerce. Suite C has noticed how investing in services can generate high customer experiences, differentiate brands, and generate new revenue streams. VRNT’s open interaction platform allows its customers to integrate and consolidate customer interaction data from disparate systems before being used in a more traditional office channel.
We see Verint as a valuable idea for those who want to play a multi-year update cycle that has just begun. Our price target is 5.5 times the business value / sales of the 2022 calendar.
Wholesale of COST-Nasdaq
Get over Price $ 387.50 on May 27th
Building on its well-established approach to providing members with exceptional price / value, Costco continues to add key convenience features to its business. Continuous improvements to Costco.com (improved search and purchase, new brands, additional categories) and delivery features (same day via Instacart) have helped COST build a growing angle of convenience. credible with its appeal to consumers.
Costco’s international clubs are more profitable than their American counterparts. As international openings become a larger percentage of the mix, Costco will benefit. It is important to note that the US and Canada [membership] renewal rates are all-time highs, which reinforces our view that COST remains as relevant as ever among consumers. Our target price of $ 430, from $ 415, is approximately 19 times our estimated Ebitda for 2022 [earnings before interest, taxes, depreciation, and amortization].
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