In a report released today, Raimo Lenschow from Barclays maintained a Buy rating on LogMeIn (LOGM), with a price target of $104. The company’s shares opened today at $80.20, close to its 52-week low of $74.87.
Lenschow observed:
“We would be surprised if the plan in its current form is executed over the next two years. We have modeled 2019 estimates to management guidance but are modeling increasing margins and FCF in 2020. This results in our new price target of $104, based on CY20E FCF of $394mn (was $435mn) and a FCF multiple of 14x (unchanged). We maintain our Overweight rating. The Numbers: The company performed better than consensus expectations on billings ($317mn vs. $312mn), revenue ($311mn vs. $307mn), and EBITDA margins (38.2% vs. 37.7%) in 4Q. However, while 1Q and FY19 revenue guidance was relatively in line with consensus (FY19 revenue guidance of $1.255bn at the midpoint vs. $1.256bn consensus), margin guidance was much lower than expected, with FY EBITDA margins at 32.7% (vs. consensus of 37.2%) and FCF margins at 28.1% at the midpoint (vs. 30.7% consensus).”
According to TipRanks.com, Lenschow is a top 25 analyst with an average return of 19.8% and a 75.1% success rate. Lenschow covers the Technology sector, focusing on stocks such as Ceridian HCM Holding Inc, SolarWinds Corporation, and Cornerstone Ondemand.
The word on The Street in general, suggests a Hold analyst consensus rating for LogMeIn with a $85 average price target.
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Based on LogMeIn’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $12.72 million. In comparison, last year the company had a net profit of $93.32 million.
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LogMeIn, Inc. engages in the development and market of remote access, remote support and collaboration solutions that provide instant, secure connections between internet enabled devices. It operates through the following geographical segments: United States; United Kingdom; and International and All Other.
