Analysts Offer Insights on Services Companies: Acushnet Holdings (NYSE: GOLF), Vipshop (NYSEARCA: VIPS) and 21st Century Fox (NASDAQ: FOXA)By Austin Angelo
There’s a lot to be optimistic about in the Services sector as 3 analysts just weighed in on Acushnet Holdings (NYSE: GOLF), Vipshop (NYSEARCA: VIPS) and 21st Century Fox (NASDAQ: FOXA) with bullish sentiments.
Acushnet Holdings (NYSE: GOLF)
Jefferies analyst Randal Konik initiated coverage with a Buy rating on Acushnet Holdings (NYSE: GOLF) today and set a price target of $25. The company’s shares closed yesterday at $19.02, close to its 52-week high of $19.18.
“We believe GOLF should see steady growth as it drives further market share gains, and benefits from an improving industry backdrop. A loyal customer base and high consumables penetration add a key aspect of predictability. We initiate coverage of GOLF with a Buy rating & $25 PT and see the risk/reward skewed to the upside. We expect the stock to be driven by multiple expansion, as GOLF trades below its peer set. JEF was a passive bookrunner in the Oct. ’16 IPO. Acushnet is the beneficiary of a stabilizing golf industry. We see several demographic tailwinds fueling the golf industry, including the 76M baby boomers entering retirement (and planning to play more golf) and improving participation from beginner/ junior golfers. Golf rounds played inflected up in 2015 and are tracking up YTD, speaking to this trend.”
According to TipRanks.com, Konik is a 3-star analyst with an average return of 0.8% and a 47.1% success rate. Konik covers the Services sector, focusing on stocks such as Eros International, Abercrombie Fitch, and ClubCorp Holdings.
Acushnet Holdings has an analyst consensus of Moderate Buy.
Vipshop (NYSEARCA: VIPS)
“Vipshop 3Q16 revenue was 2.2%/1.3% below consensus/our estimates. Non- GAAP net profit missed consensus and our estimate by 6% mainly due to GPM contraction and higher Opex.”
According to TipRanks.com, Guo is a 3-star analyst with an average return of 4.9% and a 57.1% success rate. Guo covers the Technology sector, focusing on stocks such as Alibaba Group, Sina Corp, and JD.com.
Currently, the analyst consensus on Vipshop is Strong Buy and the average price target is $16, representing a 12.9% upside.
In a report issued on November 9, Brean Capital also reiterated a Buy rating on the stock.
21st Century Fox (NASDAQ: FOXA)
“As we look toward C2017, we view FOXA as a stock that could see renewed focus from investors given relative underperformance and a valuation that is appealing. This report is the first in a series that will dig into FOXA’s various businesses – beginning with the underappreciated Int’l cable network assets. We are increasing our PT to $35 from $32 and maintain our Buy rating. Revisiting FOXA: After underperforming the broader market by ~600bps and peers like TWX, CBS, and SNI by ~2,500bps+ YTD, we think FOXA’s expected growth will be at the top end of peers in C17.”
According to TipRanks.com, Janedis is a 5-star analyst with an average return of 6.2% and a 62.2% success rate. Janedis covers the Services sector, focusing on stocks such as Interpublic Group of Companies, Live Nation Entertainment, and Madison Square Garden Co.
Currently, the analyst consensus on 21st Century Fox is Moderate Buy and the average price target is $32.71, representing a 17.7% upside.
In a report issued on November 7, Credit Suisse also reiterated a Buy rating on the stock with a $34 price target.