EasyJet (EJTTF) Receives a Hold from Barclays

Barclays analyst Rishika Savjani reiterated a Hold rating on EasyJet (EJTTF – Research Report) yesterday and set a price target of p940.00. The company's shares closed last Monday at $12.10. According to TipRanks.com, Savjani is ranked #1850 out of 7616 analysts. EasyJet has an analyst consensus of Moderate Buy, with a price target consensus of $14.22, which is a 21.5% upside from current levels. In a report issued on July 20, UBS also maintained a Hold rating on the stock with a £11.25 price target. See today’s analyst top recommended stocks >> The company has a one-year high of $14.60 and a one-year low of $6.00. Currently, EasyJet has an average volume of 314. TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities. easyJet Plc engages in the provision of passenger airline and carrier services. Its principal activities include airline operations and aircraft trading and leasing. The company was founded by Stelios Haji-Ioannou in March 1995 and is headquartered in Luton, the United Kingdom. Read More on EJTTF: 3 “Strong Buy” Stocks Under $10 With Substantial Upside Potential Amazon Missed Earnings; Not all Doom and Gloom Two Ways to Win with Zynga Stock DraftKings vs. Dolphin Entertainment: Which NFT to Choose? Realty Income Posts Mixed Q2 Results The post EasyJet (EJTTF) Receives a Hold from Barclays appeared first on TipRanks Financial Blog.

Barclays analyst Rishika Savjani reiterated a Hold rating on EasyJet (EJTTF – Research Report) yesterday and set a price target of p940.00. The company's shares closed last Monday at $12.10.

According to TipRanks.com, Savjani is ranked #1850 out of 7616 analysts.

EasyJet has an analyst consensus of Moderate Buy, with a price target consensus of $14.22, which is a 21.5% upside from current levels. In a report issued on July 20, UBS also maintained a Hold rating on the stock with a £11.25 price target.

The company has a one-year high of $14.60 and a one-year low of $6.00. Currently, EasyJet has an average volume of 314.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

easyJet Plc engages in the provision of passenger airline and carrier services. Its principal activities include airline operations and aircraft trading and leasing. The company was founded by Stelios Haji-Ioannou in March 1995 and is headquartered in Luton, the United Kingdom.

Read More on EJTTF:

  • 3 “Strong Buy” Stocks Under $10 With Substantial Upside Potential
  • Amazon Missed Earnings; Not all Doom and Gloom
  • Two Ways to Win with Zynga Stock
  • DraftKings vs. Dolphin Entertainment: Which NFT to Choose?
  • Realty Income Posts Mixed Q2 Results

The post EasyJet (EJTTF) Receives a Hold from Barclays appeared first on TipRanks Financial Blog.

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Coupang Stock Looks Attractive with International Expansion Ahead

After a strong listing and briefly reaching a high of $69 per share, Coupang (CPNG) stock has fallen closer to its IPO price of $35. While the South Korean ecommerce Read More... The post Coupang Stock Looks Attractive with International Expansion Ahead appeared first on TipRanks Financial Blog.

Coupang Stock Looks Attractive with International Expansion Ahead

After a strong listing and briefly reaching a high of $69 per share, Coupang () stock has fallen closer to its IPO price of $35. While the South Korean ecommerce company has been reporting healthy growth, it seems the markets are concerned about sustainability. (See Coupang stock chart on TipRanks)

With Chinese ecommerce stocks impacted by regulatory headwinds, it might be a good time to reconsider Coupang, given its potential to fill any void in the ecommerce space. Of course, that’s not the only reason as there are several business developments that can possibly serve as catalysts for additional upside. 

It’s worth mentioning that Coupang reported cash and equivalents of $4.3 billion as of March 2021. That strong cash buffer gives the company ample financial headroom to pursue plans that ensure robust growth.

Aggressive International Expansion

Since inception, Coupang has remained focused on the South Korean ecommerce market. However, after the initial public offering, the company has been looking at aggressive expansion outside of Korea. 

Japan was the first international market for Coupang, followed by Taiwan. The company also seems set to commence operations in Singapore. As the addressable market increases, the company seems positioned for revenue acceleration. 

An important point to note here is that Coupang is targeting the high-potential Southeast Asian market. Reports suggest that Southeast Asia has 400 million internet users. Due to the pandemic, 40 million internet users were added last year. This creates a big ecommerce market opportunity. 

It seems very likely that Coupang will also enter big markets like Indonesia, Malaysia, Vietnam and Philippines in the coming years. Even with growing competition, these markets are attractive for the next decade.

Sustainable Growth in South Korea

While international markets will help in accelerating growth, South Korea is likely to remain the biggest market for Coupang. Total ecommerce spend in South Korea was $128 billion in 2019. This is expected to rise to $206 billion by 2024. As a market leader, Coupang seems well positioned to benefit. 

It should be noted that for Q1 2021, the company reported revenue growth of 74% to $4.2 billion on a year-on-year basis. For the same period, the company’s active customers increased by 21% to 16 million. 

Cash burn does not seem to be a concern even as the company pursues aggressive sales and marketing efforts. EBITDA losses have narrowed in the last few years and CPNG is poised to deliver positive EBITDA margins in the next few quarters. 

The net revenue per active customer was $182 in Q1 2020. This has increased to $262 in Q1 2021. Sustained growth in revenue per active customer is positive for long-term cash flows. 

Further, in terms of growth, there are speculative reports that Coupang is likely to launch an online business that specializes in office supplies and other consumer products. “Coupang Biz” is set to be the brand that is dedicated to business-to-business transactions.

Wall Street’s Take

According to TipRanks, CPNG stock comes in as a Moderate Buy, with two Buy and three Hold ratings assigned in the last three months.

As for price targets, the average Coupang price target is $46.60 per share, implying around 27.7% upside potential from current levels.

Concluding Views

Coupang is the largest ecommerce player in South Korea, with a robust logistics network. The company is likely to maintain a leadership position in a market that continues to grow at a healthy pace. 

At the same time, Coupang is well-positioned from a financial perspective to expand into new markets. Entry into Southeast Asia is likely to be a game changer. 

After underperformance since the initial public offering, Coupang stock looks attractive. Once EBITDA margins turn positive and cash flows accelerate, the stock seems positioned to trend higher. 

Disclosure: On the date of publication, Faisal Humayun owned shares of Coupang (CPNG). 

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.

The post Coupang Stock Looks Attractive with International Expansion Ahead appeared first on TipRanks Financial Blog.

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