Endurance International Gets a Buy Rating from Oppenheimer

By Carrie Williams

In a report released today, Jason Helfstein from Oppenheimer maintained a Buy rating on Endurance International (NASDAQ: EIGI), with a price target of $9. The company’s shares closed yesterday at $7.35.

Helfstein noted:

“We are decreasing our price target to $9 from $12, but maintaining our Outperform rating based on low P/FCF valuation and turnaround potential under new CEO. EIGI reported better-than-expected 4Q results, but guided FY18 margins lower on incremental investments to improve the long-term growth profile of the business. While turnaround likely won’t be evident until FY19, story/key priorities are beginning to take shape. Mgmt. is investing in Bluehost/Hostgator products, while focusing on cross- and up-sell w/platform approach (similar to GDDY with Office 365). S&M spending to be rationalized and optimized through FY18. Domains to see increased focus as top-of-funnel driver of sub additions. Mgmt needs to show that top-line improvements can offset run-off in non-core assets, over time.”

According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 16.7% and a 62.9% success rate. Helfstein covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, Interxion Holding NV, and IAC/InterActiveCorp.

Endurance International has an analyst consensus of Moderate Buy, with a price target consensus of $8.17.

Based on Endurance International’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $294 million and quarterly net profit of $7.47 million. In comparison, last year the company earned revenue of $292 million and had a GAAP net loss of $34.87 million.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Endurance International Group Holdings, Inc. provides cloud-based platform solutions to help small and medium sized businesses succeed online. It offers security, site backup, premium domains, search engine optimization, search engine marketing, Google Adwords, mobile solutions, social media enablement, website analytics, email marketing and productivity and e-commerce tools. The company operates through the following segments: Web Presence and Email Marketing. Web Presence segment consists of web hosting, domains and the related products and services. Email Marketing segment consists of the products and services historically offered by Constant Contact. It also includes event marketing, survey tools and SinglePlatform. Its brands includes: Constant Contact, Bluehost, HostGator, iPage, Domain.com, BigRock, SiteBuilder and SinglePlatform. The company was founded by Hari K. Ravichandran on October 28, 2011 and is headquartered in Burlington, MA.