UPDATE: Goldman Sachs Initiates Coverage on ClubCorp on Good Upside Potential
In a report published Tuesday, Goldman Sachs analyst Steven Kent initiated coverage on ClubCorp Holdings (NYSE: MYCC) with a Buy rating and $18.00 price target.
In the report, Goldman Sachs noted, “We initiate coverage on ClubCorp (MYCC) with a Buy rating and a 12-month price target of $18, implying 25% upside. We consider that MYCC, as the largest US owner-operator of country clubs and business clubs, is well placed to gain market share through acquisitions from an industry that is contracting. A high recurring revenue base, footprint in favorable geographies, and repositioning of existing clubs all create sustainable earning power. Our Buy rating is based on: (1) significant upside to our current base level forecast, and (2) an inexpensive valuation relative to our coverage universe at 8.3X 2014E EBITDA.”
ClubCorp Holdings closed on Monday at $14.41.
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