Zulily Rating Increased to Buy at CRT Capital (ZU)
Zulily (NYSE:ZU) was upgraded by stock analysts at CRT Capital from a “fair value” rating to a “buy” rating in a report issued on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $41.00 target price on the stock. CRT Capital’s target price points to a potential upside of 25.00% from the stock’s previous close.
The analysts wrote, “ZU shares closed last Friday at $32.80, representing a 16% sell-off since 2Q earnings on August 6 (vs. the NASDAQ up ~5% over the same timeframe). While ZU reported a mixed 2Q, beating consensus forecasts for the quarter but guiding 3Q EBITDA below the Street, we view the extended negative reaction to 2Q as overdone, and believe that risk-reward is now in positive territory with the stock now trading at 34x/20x 2015E/2016E EV/EBITDA, versus our expectation for revenue and EBITDA to grow at CAGRs of 52% and 95%, respectively, from 2013 to 2016. Further, we note that ZU’s upcoming analyst day on September 11 at its Ohio fulfillment center could act as a catalyst for the shares. We are upgrading ZU shares to Buy and maintain our $41 price target, based on 28x 2016E EV/EBITDA.”
Shares of Zulily (NYSE:ZU) traded up 3.78% on Tuesday, hitting $34.04. The stock had a trading volume of 943,777 shares. Zulily has a 52 week low of $28.75 and a 52 week high of $73.50. The stock’s 50-day moving average is $35.81 and its 200-day moving average is $42.42. The company has a market cap of $4.251 billion and a P/E ratio of 425.97.
Zulily (NYSE:ZU) last announced its earnings results on Wednesday, August 6th. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.02. The company had revenue of $285.00 million for the quarter, compared to the consensus estimate of $272.04 million. The company’s revenue for the quarter was up 96.6% on a year-over-year basis. On average, analysts predict that Zulily will post $0.19 earnings per share for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Citigroup Inc. reiterated a “neutral” rating on shares of Zulily in a research note on Thursday, August 7th. They now have a $38.00 price target on the stock, down previously from $41.00. Separately, analysts at RBC Capital upgraded shares of Zulily from a “sector perform” rating to an “outperform” rating in a research note on Thursday, June 26th. They now have a $50.00 price target on the stock. They noted that the move was a valuation call. Finally, analysts at Goldman Sachs upgraded shares of Zulily from a “neutral” rating to a “buy” rating in a research note on Wednesday, June 25th. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $42.00.
Zulily, Inc is an e-commerce company. The Company, through its desktop and mobile Websites and mobile applications, which it refers to as its sites, helps its customers discover new and unique products.
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