ZipRecruiter’s inventory is expected to increase with more online job postings. Plus 4 other companies.
These reports, extracted and edited by Barron’s, were recently published by investment and research firms. Reports are a sample of analysts’ thinking; they should not be taken as the opinions or recommendations of Barron’s. Some of the reporters have provided, or hope to provide, investment banking or other services to the companies analyzed.
Strong buy Price $ 20.64 on June 17th
by Raymond James
We’re launching the ZipRecruiter cover with a strong buy rating and a target price of $ 36. Our fundamental positive view is based on: 1) a large total addressable recruiting market that is increasingly evolving online; 2) a leading position with strong brand awareness resulting in a high level of organic traffic; 3) unique AI-powered matching technology enabling better outcomes for employers and job seekers; 4) our expectation of long-term revenue growth of over 15%, driven by an increasing number of employers, attracting more job seekers, improving its matching technology, price optimization and l global expansion; and 5) our expectations for long-term EBITDA margins of over 30%.
Lincoln Electric Holdings
Surpass Price $ 127.69 on June 22
We are improving Lincoln Electric to outperform Perform, given confidence in its attractive demand track, upside potential for earnings and favorable valuation. After many years of timid industrial investment, we expect a significant recovery in investment as business confidence improves and companies invest in the technologies needed to be more agile, efficient and resilient in the future. We see Lincoln Electric [a maker of welding products] as a key beneficiary of the renewed capital spending, with its portfolio of more than $ 300 million in “pruning” since 2009, implying stronger and more profitable growth throughout the new cycle. In our view, Lincoln’s automation and additive strategy remains the most compelling aspect of history (clear secular underlying) and a likely source of BPA outperformance and valuation support as growth re-accelerates. over the next few quarters. Target price: $ 147.
Surpass Price $ 43.37 on June 23
We reiterate our outperformance rating on KB. The company’s stock price decline after earnings release on June 23 may be attributed to KB’s second-quarter revenue of $ 1.44 billion, which is below consensus at 1.50 billion dollars. Another reason could be the fiscal sales forecast of $ 1.50 billion to $ 1.58 billion for the third quarter, below the consensus forecast of $ 1.62 billion. Despite this news, KB raised the midpoint of the revenue forecast for fiscal 2021 to $ 6 billion from $ 5.9 billion, which suggests to us that fourth-quarter sales are expected to increase by more than 20% sequentially. compared to the third trimester. The 126% year-over-year increase in backlog in the second quarter to $ 4.3 billion, and order growth of 145%, beating consensus at 122%, are also highlights in our view. The current business activity is apparently less hectic than at the start of the year, but management is still limiting sales and raising prices to prevent orders from exceeding build capacity. Target price: $ 56.
Positive Price $ 285.70 on June 24
by the Susquehanna financial group
As the broader market for information technology services has improved significantly, Accenture’s new leadership appears to allow them to do even better and gain market share. Hypergrowth is balanced across all “strategic priorities”, with Cloud, Interactive, Industry X and Security all showing “very strong double-digit growth”. From a “services” perspective, we were encouraged to see Strategy & Consulting rebound to “single digit growth” as this is usually the funnel and was certainly engaged in closing a record high. 20 new transactions over $ 100 million. We believe the “next generation growth model” introduced by Accenture’s new management in January 2020 is helping them build on the recovery. It localizes and globalizes the sales and delivery process. We remain rated positive assuming Accenture continues to gain market share next year. We are increasing the estimates, and our price target follows, to $ 340.
To sell Price $ 172.92 on June 23
The debate for Clorox centers on whether the habits formed during Covid-19 will lead to accelerated category growth for the company’s portfolio, particularly in the cleaning and health / wellness segments. We have teamed up with UBS’s New Analytical Approaches team to try to deactivate this potential. Many categories are still seeing high purchasing levels, but overall there also appears to be a downward trend towards expected growth, had Covid not happened, suggesting less ‘sticking’ to more long term. We are seeing a decline in category growth and impacts on price elasticity on volume and headwinds from the reinvestment margin needed to share the right size, leading to lower Street EPS estimates. The next catalysts are: 1) Clorox’s fiscal fourth quarter earnings in July / August, when it provides guidance for fiscal 2022, and 2) market share performance in Nielsen data over the next few months. as the comps begin to normalize and the price increases are implemented. Target price: $ 166.
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