After the makeover, Bed Bath & Beyond is ready for prime time again
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.
Bed bath and beyond
Buy Price $ 33.29 on June 29
by B Riley Securities
We begin hedging with a 12-month price target of $ 44 per share. We believe that BBBY’s new management team has made significant improvements to reduce its cost structure and fund investments to elevate it to a leading omnichannel retailer in the bed, bathroom and bathroom industry. the House. Bed Bath & Beyond is trading around 10.9 times our estimate of FY2022 EPS and 14.2 times that of Street, which we believe does not fully reflect the significant improvements in margins. This compares to BBBY’s historic five-year average of 9.9 times and 16.8 times that of its peers. We are basing our price target on 16 times our estimated earnings from EPS for fiscal year 22. This is appropriate given the significant improvement in margins, cost reductions, fewer stores and fewer stores. rebased cost of goods sold, as well as enhanced e-commerce capabilities. We also anticipate that sales will benefit from the deployment of unique owned brands, which provide value and differentiation from competitive products.
Surpass Price $ 26 June 28
by Raymond James
We’re increasing our 12-month price target for the stock to $ 40 from $ 35 after hosting a fireside chat with CEO Aaron Levie and CFO Dylan Smith, during which we received an update on the company’s main products and market initiatives. We believe Box’s ambition to provide a unified / secure platform for content will increasingly resonate with customers. With other products aimed at increasing the customer value proposition, Box will continue to widen the gap between itself and legacy content management platforms. With other dynamics (especially trends in working from anywhere) pushing companies to rethink their digital strategies, investors may underestimate the fundamental tailwinds for Box. And we’re encouraged by Box’s execution on its more balanced growth / profitability approach, including significant margin expansion. With the stock at just five times our 2022 revenue estimate, the risk / reward ratio is attractive.
Hold Price $ 78.12 June 25
We are launching a hedge with Hold odds and a 12 month price target of $ 82. Planet Fitness is the premier franchisor in the fitness club industry; its high volume / low price strategy has enabled it to achieve around 22% membership shares. Its advantages of scale and the strength of its franchisees have enabled the company to weather the pandemic without a single Covid-related unit closure. Planet Fitness will resume expansion, but we believe the stock’s valuation is currently reasonable given the uncertainty over how long it will take franchisees to replenish their resources.
Surpass Price $ 32.35 June 30
by Barrington Research
Franklin covey [which provides digital training products to improve employee sales and other performance] released third quarter tax results that far exceeded expectations. Management has raised its guidance for fiscal 2021 and has suggested a likely increase in its long-term financial goals. Revenue rose 58.3% to $ 58.7 million from $ 37.1 million in the third quarter hit by the pandemic last year. Adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] amounted to $ 8.6 million, compared to a loss of Adjusted EBITDA of $ 3.6 million, reflecting increased sales and improved margins. The net GAAP was $ 12.8 million, or 90 cents per share, compared with a loss of $ 11 million, or 79 cents, last year. Excluding a tax benefit of $ 10.9 million, diluted EPS would have been 13 cents per share. Management has raised its EBITDA forecast for fiscal 2021 to $ 24.5 million – $ 26.5 million, from $ 20 million to $ 22 million.
Mid Penn Bancorp
Overweight Price $ 27.45 June 30
by Piper Sandler
MPB announced definitive agreement to acquire Harrisburg, PA-based company
(RIVE), parent company of Riverview Bank, in an all-stock transaction valued at $ 125 million. The agreement is more financial than strategic; it marks the expansion of Millersburg, Pa., based MPB, which has $ 3.4 billion in assets, to the Lehigh Valley and State College area, adding to its franchise in the western part of the state . Basically, it offers enough scale and overlap to generate savings of 50%. [Piper Sandler advised MPB on the transaction.] Our target stock price is $ 30.
Euronet in the world
Buy Price $ 136.06 on June 29
Our latest take on EEFT [which offers worldwide electronic payment services] is that while European travel is showing signs of improvement, the pace is relatively slow. This leads us to temper our expectations for the 2021 financial year in the face of the positive impact that summer tourism generally brings to the company. However, we are positive about Euronet’s omnichannel approach to money transfer and we expect market share gains over the next few years; our current price target is $ 180. With stocks trading at a price / earnings multiple of approximately 16 times our estimate for FY 22, we consider the risk / reward ratio to be favorable.
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