Sotheby’s Upgraded to “Buy” by Citigroup Inc. (BID)
Sotheby’s (NYSE:BID) was upgraded by research analysts at Citigroup Inc. from a “neutral” rating to a “buy” rating in a report released on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $55.00 price target on the stock, up from their previous price target of $45.00. Citigroup Inc.’s price objective indicates a potential upside of 15.62% from the stock’s previous close.
The analysts wrote, “We’re upgrading BID to Buy as we do expect Sotheby’s to evaluate & execute upon a combination of activities which should drive stock upside from here: HQ sale leaseback, monetization of accounts receivable, return to selling of lower value lots, incremental leverage, LBO/M&A, and/or revenue driving strategic options. Strategically speaking: BID could return to selling lower value lots, license the brand into other disciplines, and pursue eComm/Asia even more aggressively while leveraging its existing brand brawn. We also believe a global M&A backdrop supports valuation & our LBO analysis indicates a 15-18% return achievable at a $50-55 price. In our view, BID will need to make choices given new owners: 5.7% Third Point, 4.9% Marcato, & 3% Trian.”
Shares of Sotheby’s (NYSE:BID) traded up 1.83% during mid-day trading on Tuesday, hitting $48.44. 464,387 shares of the company’s stock traded hands. Sotheby’s has a 52-week low of $27.98 and a 52-week high of $49.17. The stock’s 50-day moving average is $46.08 and its 200-day moving average is $39.91. The company has a market cap of $3.310 billion and a P/E ratio of 31.93.
Sotheby’s (NYSE:BID) last posted its quarterly earnings results on Tuesday, August 6th. The company reported $1.33 earnings per share for the quarter, missing the analysts’ consensus estimate of $1.37 by $0.04. The company had revenue of $304.80 million for the quarter, compared to the consensus estimate of $318.14 million. During the same quarter in the prior year, the company posted $1.24 earnings per share. The company’s quarterly revenue was up .3% on a year-over-year basis. Analysts expect that Sotheby’s will post $1.76 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on BID. Analysts at Craig Hallum reiterated a “hold” rating on shares of Sotheby’s (NYSE:BID) in a research note to investors on Thursday, September 12th. They now have a $38.00 price target on the stock. Separately, analysts at Stifel Nicolaus raised their price target on shares of Sotheby’s (NYSE:BID) from $49.00 to $65.00 in a research note to investors on Thursday, September 12th. They now have a “buy” rating on the stock. Finally, analysts at Williams Capital raised their price target on shares of Sotheby’s (NYSE:BID) from $29.00 to $32.00 in a research note to investors on Monday, August 12th. They now have a “sell” rating on the stock.
Two analysts have rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $46.03.
In other Sotheby’s news, Director John Angelo sold 275,000 shares of the company’s stock in a transaction dated Monday, September 16th. The stock was sold at an average price of $48.55, for a total value of $13,351,250.00. Following the completion of the transaction, the director now directly owns 117,200 shares in the company, valued at approximately $5,690,060. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.
Sotheby’s is a global auctioneer of authenticated fine art, decorative art, and jewelry. The Company operates in three segments: Auction, Finance, and Dealer.
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