In a report released yesterday, Scott Schneeberger from Oppenheimer maintained a Buy rating on BEST Inc (BSTI), with a price target of $10. The company’s shares closed yesterday at $6.22.
Schneeberger wrote:
“3Q18 revenue (+34% y/y) exceeded our estimate/consensus. 3Q18 adjusted EBITDA, which inflected positive in 2Q18, slid q/q to breakeven and was shy of our estimate/consensus. The lower than expected 3Q18 operating result impacted adjusted EPS, which was below our estimate/consensus. That said, BEST remains hopeful adjusted EPS may inflect positive in 4Q18 on revenue growth guidance of 21% to 24% y/y. 4Q18 Express segment volume growth y/y is anticipated to accelerate from 3Q18, but industry pricing, which appears to be firming slightly ahead of peak, remains relatively less certain. We’re hopeful BEST can improve profitability in coming quarters, acknowledging its logical long-term growth initiatives across segments limit pace near term. Modifying our target from $12 to $10, we remain constructive on what BEST can become.”
According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 9.9% and a 63.3% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for BEST Inc with a $8 average price target, implying a 28.6% upside from current levels. In a report issued on November 12, KeyBanc also maintained a Buy rating on the stock with a $8 price target.
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Based on BEST Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $7.52 million. In comparison, last year the company had a GAAP net loss of $70.06 million.
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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.
