There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Liveperson (LPSN) and Cars com Inc (CARS) with bullish sentiments.
Liveperson (LPSN)
B.Riley FBR analyst Zach Cummins reiterated a Buy rating on Liveperson today and set a price target of $32. The company’s shares opened today at $28.22, close to its 52-week high of $28.70.
Cummins commented:
“We expect the company will use a portion of the remaining ~$172M in proceeds to support the anticipated ramp in sales and marketing headcount in 1H19. The additional proceeds also provide the company with the necessary flexibility to pursue acquisitions or other strategic transactions over the longer-term. We intend to update our model to include the projected convertible note balance sometime after the expected close of the transaction on Monday, 3/4.”
According to TipRanks.com, Cummins is a 1-star analyst with an average return of -2.9% and a 53.5% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, ChannelAdvisor, and Computer Task.
Liveperson has an analyst consensus of Strong Buy, with a price target consensus of $32, which is a 13.4% upside from current levels. In a report issued on February 22, Needham also maintained a Buy rating on the stock with a $30 price target.
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Cars com Inc (CARS)
B.Riley FBR analyst Sameet Sinha reiterated a Buy rating on Cars com Inc today and set a price target of $31. The company’s shares opened today at $23.47.
Sinha said:
“We reiterate our Buy rating on Cars.com (CARS) despite a 4Q miss, as we expect a successful end to the strategic alternatives process. For 4Q, revenue/AEBITDA came in at $164.3M/$61.1M versus our estimates of $165.5M/$58.6M and consensus at $166.6M/$59.7M. Dealer churn and slowing OEM spend in National advertising were the primary culprits for the miss. 2019 guidance missed our/consensus estimates as the company is faced by further dealer churn, the overall auto industry faces multiple headwinds (interest rates/tax returns, etc.), and marketing investments weigh on margins. Looking further out, management expects to see a rebound in 2020/2021, forecasting revenue growth of 5%-12% and AEBITDA margins of 32%-34%; the outlook was stipulated by the company’s activist settlement.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 5.3% and a 49.8% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Brightcove Inc, and Yelp Inc.
Currently, the analyst consensus on Cars com Inc is a Moderate Buy with an average price target of $29.25, representing a 24.6% upside. In a report issued on February 25, Barrington also maintained a Buy rating on the stock.
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