In a report released today, Ian Zaffino from Oppenheimer maintained a Buy rating on CDK Global (CDK), with a price target of $67. The company’s shares opened today at $58.26.
Zaffino commented:
“Helped by new site wins and layered applications, 1Q19 adjusted EBITDA of $211.4M beat our/Street’s $210M/$211M; adjusted EPS of $0.91 beat our/Street’s $0.84. Adjusted EPS guidance was lowered to $3.80-$3.90, from $3.85-$3.95, owing solely to the dilution from ELEAD1ONE. For the same reason, CDK also removed its goal of 40% margins exiting FY19. Separately, ex-Intel CEO Brian Krzanich was appointed CEO and he will pivot the company toward revenue and “EBITDA dollar” growth. To conform, we reduce FY19E adjusted EPS to $3.75, from $3.93. Maintain Outperform, but lower price target to $67, from $80.”
According to TipRanks.com, Zaffino is a 3-star analyst with an average return of 1.3% and a 51.3% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Hotels & Resorts Inc, and Wyndham Destinations Inc.
CDK Global has an analyst consensus of Moderate Buy, with a price target consensus of $80, which is a 37.3% upside from current levels. In a report issued on November 5, Barrington also maintained a Buy rating on the stock with a $80 price target.
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Based on CDK Global’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $99.4 million. In comparison, last year the company had a net profit of $81.3 million.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock.
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CDK Global, Inc. engages in the provision of integrated information technology and digital marketing solutions to the automotive retail industry. It operates through following segments: Retail Solutions North America, Advertising North America, and CDK International.
