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 $50.10.
Zaffino said:
“In a sign the business has regained momentum, FY2Q19 adjusted EBITDA of $222M beat our/Street’s $216M/$215M estimates; adjusted EPS of $0.98 also beat our/ Street’s $0.90 estimates. Given the solid performance, management indicated it would likely reach the high-end of FY2019 adjusted EPS guidance of $3.70-3.80. Management would not comment on acquisition rumors, but mentioned its near-term focus is on core growth initiatives and the integration of recently acquired ELEAD. This leads us to believe a large deal is unlikely. Maintain Outperform.”
According to TipRanks.com, Zaffino is a 3-star analyst with an average return of 0.4% and a 51.6% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Hotels & Resorts Inc, and frontdoor inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for CDK Global with a $64.75 average price target, representing a 29.2% upside. In a report released today, Barrington also assigned a Buy rating to the stock with a $80 price target.
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The company has a one-year high of $71.71 and a one-year low of $44.01. Currently, CDK Global has an average volume of 1.22M.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CDK in relation to earlier this year.
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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.
