Following a rally to fresh all-time highs, Momo Inc (NASDAQ:MOMO) stock suffered a considerable setback.
However, if you’ve been interested in buying MOMO, there’s good reason to “like” shares today. This morning, Standpoint’s top analyst Ronnie Moas upgraded MOMO shares from Hold to Buy, with a price target of $54, which represents a potential upside of 31% from where the stock is currently trading.
Moas commented, “MOMO is my recommendation from August 30, 2017. It jumped 55% for me and I closed it out at $53.31 on June 18 (six weeks ago). It has dropped by 25% since my exit and is now trading at $40. I would reinstate this at this time from Hold to Buy with a $54 price target for 2020 (35% upside). The stock is now trading at just ~13 X earnings estimates for next year. Revenue growth should be 25%. There is 1 billion dollars in cash on their balance sheet with no debt against the market cap of 8 billion dollars. If you stripped out the cash, the stock is trading at 11.5 X earnings. Attached as my 24-page report on MOMO from last year.”
People often ask, is it worth listening to this analyst? In this case, the answer is clearly yes. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, Moas has a yearly average return of 6% and a 70% success rate. Moas has a 47.2% average return when recommending MOMO, and is ranked #106 out of 4836 analysts.
Overall, when it comes to Wall Street’s bet, the odds are on this Chinese internet firm, with TipRanks analytics showcasing MOMO as a Strong Buy. Out of 10 analysts polled by TipRanks in the last 12 months, all 10 are bullish on the stock. With a return potential of nearly 24%, the stock’s consensus target price stands at $51.25.
Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features, Momo enables users to connect with each other and expand relationships from online to offline.