There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Cars.com, Inc. (CARS) and ChannelAdvisor (ECOM) with bullish sentiments.
Cars.com, Inc. (CARS)
In a report issued on September 13, Lee Krowl from B.Riley FBR maintained a Buy rating on Cars.com, Inc., with a price target of $18. The company’s shares closed last Monday at $10.94, close to its 52-week low of $8.23.
Krowl said:
“We believe the good initial uptake of the DI product across CARS’ existing customer base since the acquisition in 2018, coupled with the enhanced product offerings such as Social and Conversations, positions DI well relative to the three other approved site vendors. In terms of implications, we note that given the sales process of about 4-6 months for the DI product, revenue contribution is likely to be modest in 2019, and more of a driver in 2020.”
According to TipRanks.com, Krowl is a 5-star analyst with an average return of 37.7% and a 77.3% success rate. Krowl covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Rubicon Project.
Currently, the analyst consensus on Cars.com, Inc. is a Hold with an average price target of $15.13.
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ChannelAdvisor (ECOM)
B.Riley FBR analyst Zach Cummins reiterated a Buy rating on ChannelAdvisor on September 13 and set a price target of $12. The company’s shares closed last Monday at $9.95.
Cummins noted:
“Yesterday (9/12), we hosted a non-deal roadshow in Corporation (ECOM). We came away from the meetings with three key takeaways. 1) Despite current revenue growth challenges, management remains confident in its ability to drive improving profitability and free cash flow generation in the coming quarters; 2) management plans to invest in quota-carrying headcount in the U.S., which has experienced capacity issues over the past 12-18 months; and 3), the development of the indirect sales channel and potential tuck-in acquisitions could serve as key drivers for revenue growth and continued margin expansion in FY20 and beyond.”
According to TipRanks.com, Cummins is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -12.8% and a 36.6% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, American Software, and Computer Task.
Currently, the analyst consensus on ChannelAdvisor is a Moderate Buy with an average price target of $12.
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