.jpg "Webcom Group (NASDAQ: WEB)")
In a report released today, Naved Khan from SunTrust Robinson maintained a Buy rating on Webcom Group (NASDAQ: WEB), with a price target of $24. The company’s shares opened today at $25, close to its 52-week high of $25.95.
Khan commented:
“We believe that size/scale of Web.com business (3.3M subs) could be an opportunity for both private equity and strategic acquirers to further consolidate the domains/web building/hosting segment, given the attractive FCF and LTV characteristics. We also believe that there could be potential buyers of the individual pieces of the business (legacy Retail, LightHouse etc) as well, resulting in a sale of the parts Web.com agreed to be acquired by Siris Capital Group (private equity) for $25/share. The implied valuation on our 2018/2019 EBITDA estimates are 10.3x/10.2x, respectively.”
According to TipRanks.com, Khan is a 5-star analyst with an average return of 24.9% and a 81.3% success rate. Khan covers the Technology sector, focusing on stocks such as Wix.com Ltd, trivago NV, and GoDaddy.
Currently, the analyst consensus on Webcom Group is Strong Buy and the average price target is $24, representing a -4.0% downside.
In a report issued on June 11, BWS Financial also upgraded the stock to Buy with a $32 price target.
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Webcom Group’s market cap is currently $1.15B and has a P/E ratio of 22.52. The company has a Price to Book ratio of 4.01.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is neutral on the stock.
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Web.com Group, Inc. engages in the provision of Internet services and online marketing solutions for small to medium-sized businesses. The company solutions include domains, hosting, website design and management, search engine optimization, online marketing campaigns, local sales leads, social media, mobile products, and eCommerce solutions.
