BEST Inc (BSTI) Received its Third Buy in a Row


After KeyBanc and Stifel Nicolaus gave BEST Inc (NYSE: BSTI) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Scott Schneeberger reiterated a Buy rating on BEST Inc yesterday and set a price target of $12. The company’s shares closed yesterday at $8.76, close to its 52-week low of $8.08.

Schneeberger wrote:

“2Q18 adjusted EBITDA inflected positive to RMB 42M vs. our estimate/consensus of RMB 15M/62M. 2Q18 revenue was lighter than anticipated, primarily in BEST’s Express segment, where 40% y/y parcel volume growth outpaced 25% y/y industrywide growth, although industry pricing was a headwind. We anticipate BEST striking a favorable balance of volume/price in future quarters as it focuses on enhanced profitability. BEST’s Express/Freight/Store/Supply Chain segments all grew 2Q18 revenue 30%+ y/y. 2Q18 total company gross margin expanded 350bps y/y with network optimization benefitting. BEST’s 2H18 revenue guidance signals continued elevated growth, albeit lower than previously expected. We’re correspondingly modifying our 2018E/2019E and tempering our target from $13 to $12.”

According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 12.3% and a 70.4% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, Landstar System Inc, and General Finance.

Currently, the analyst consensus on BEST Inc is a Strong Buy with an average price target of $11, representing a 25.6% upside. In a report issued on August 9, KeyBanc also maintained a Buy rating on the stock with a $11 price target.

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The company has a one-year high of $13.54 and a one-year low of $8.08. Currently, BEST Inc has an average volume of 1.62M.

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BEST, Inc. (China) is a holding company, which engages in the smart supply chain services. It operates through the following business segments: Supply Chain Management, Express Delivery, Freight Delivery, Store, and Others. The Others segment relates to the cross-border logistic coordination services.

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