Analysts Offer Insights on Technology Companies: Corelogic (NYSE: CLGX), Broadcom Ltd (NASDAQ: AVGO) and Rubicon Project (NYSE: RUBI)By Jason Carr
Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Corelogic (NYSE: CLGX), Broadcom Ltd (NASDAQ: AVGO) and Rubicon Project (NYSE: RUBI).
Corelogic (NYSE: CLGX)
In a report released today, Darrin Peller from Barclays reiterated a Buy rating on Corelogic (NYSE: CLGX), with a price target of $53. The company’s shares opened today at $41.54, close to its 52-week high of $43.43.
“We continue to view shares as undervalued at ~12x our FY17 FCF per share estimate. Key takeaways from our meetings include: Pricing Upside: After limited price increases in recent years, recent technological investments by the company (including a shift towards cloud-based systems) have allowed CLGX to raise pricing on key data-related product offerings. In addition, the company is passing through trended data price increases. We continue to view pricing as an opportunity to deliver ~100bps of revenue through 2017. New Products: CLGX continues to introduce new products, and its most recent launches of CondoSafe and Property Tax Estimator have successfully signed numerous clients. We also see opportunities for the introduction of new products in the MLS business on the horizon. In aggregate, we estimate these initiatives should continue to drive ~100 bps of revenue growth in the medium-term. Valuation Solutions Group: VSG has a run rate of ~$400mn+ in annual revenue of an estimated $4bn appraisal market. As a reminder, the company’s non-compete ended Sept. 30, which enables CLGX to start soliciting and signing business in 4Q, with revenue growth ramping in 1H17.”
According to TipRanks.com, Peller is a 5-star analyst with an average return of 10.4% and a 68.9% success rate. Peller covers the Technology sector, focusing on stocks such as Broadridge Financial Solutions Llc, Fidelity National Info, and Computer Sciences.
Currently, the analyst consensus on Corelogic is Strong Buy and the average price target is $48.67, representing a 17.2% upside.
In a report issued on October 24, Oppenheimer also assigned a Buy rating to the stock with a $45 price target.
Broadcom Ltd (NASDAQ: AVGO)
RBC Capital analyst Amit Daryanani reiterated a Buy rating on Broadcom Ltd (NASDAQ: AVGO) yesterday and set a price target of $190. The company’s shares opened today at $172.45, close to its 52-week high of $179.42.
According to TipRanks.com, Daryanani is a 4-star analyst with an average return of 3.7% and a 61.8% success rate. Daryanani covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Benchmark Electronics, and Applied Materials.
Currently, the analyst consensus on Broadcom Ltd is Strong Buy and the average price target is $203.70, representing a 18.1% upside.
In a report issued on October 20, Brean Capital also reiterated a Buy rating on the stock.
Rubicon Project (NYSE: RUBI)
Cantor Fitzgerald analyst Youssef Squali reiterated a Hold rating on Rubicon Project (NYSE: RUBI) today and set a price target of $8. The company’s shares opened today at $6.21, close to its 52-week low of $6.12.
“3Q16 results miss on top line, ahead on bottom line. RUBI reported non- GAAP net revenue of $60.6M (+4.7% Y/Y), 2.3% below FactSet consensus of $62.0M, reflecting ongoing challenges with header bidding and reduction in desktop display. However, EBITDA of $15.3M (25.3% margin) and adjusted EPS of $0.32 were 47%/260% ahead of consensus’ $10.4M/$0.09 estimates. Further deterioration in managed revenue results in Y/Y decline… Managed revenue declined 0.7% Y/Y to $242.8M (vs. +13.4% in 2Q16), primarily reflecting continued headwinds in US desktop spending, which declined 12% Y/Y (66% of total spend), more than offsetting 31% Y/Y growth in mobile. In addition to header bidding competition, management also cited general softness in the ad market precipitated by uncertainty around the elections and Brexit. …causing management to lower guidance again. Managed revenue is expected to get worse in 4Q16 before it gets better, causing mgt. to lower FY16 net revenue guidance by 5.4% to $249-257M (vs. $260-275M previously, and cons. of $268M), and FY16 EBITDA by 1.6% to $59-67M (vs. $60-68M previously, and cons. of $66.8M). For 4Q16, guidance is for net rev.”
According to TipRanks.com, Squali is a top 25 analyst with an average return of 11.4% and a 67.9% success rate. Squali covers the Technology sector, focusing on stocks such as TripAdvisor Inc., Microsoft Corp, and Trade Desk Inc.
Currently, the analyst consensus on Rubicon Project is Hold and the average price target is $11, representing a 77.1% upside.
In a report issued on October 27, Albert Fried also maintained a Hold rating on the stock with a $8 price target.