UPDATE: Stifel Reiterates on ChannelAdvisor Following Release of November SSS Results
In a report published Friday, Stifel analyst Brad Reback reiterated a Buy rating on ChannelAdvisor (NYSE: ECOM), and raised the price target from $38.00 to $42.00.
In the report, Stifel noted, “ECOM released its same-store sales (SSS) results for November. While at first glance it appears as if ECOM's customers' performances have meaningfully decelerated on key marketplaces during November and underperformed the broader e-commerce market, we note most of this is just optical and due to a shifting in the holiday season (recall Thanksgiving was 6 days later in 2013 than 2012 and Cyber Sunday and Cyber Monday fell into December this year). We note due to this timing issue, ECOM's SSS for Amazon slowed down in November and only grew 12.3% (down from 23.8% in October) and its SSS on eBay also slowed in November and only increased 10.9% (down from 12.9% in October). However, if ECOM's results are adjusted for these timing issues and we compare 10/29/12-11/27/12 to 11/4/13-12/3/13 (an apples to apples comparison for holidays), the trends are very strong. We highlight on an adjusted basis, SSS on Amazon increased 37.1% and SSS on eBay accelerated to 23.3%. Even if we don't make these adjustments, we believe the strong trends in ECOM's business will be reflected in very strong December SSS results. Given these positive data points, we are increasingly confident ECOM is well positioned to exceed our 4Q revenue forecast of $19.8 million and deliver greater than 23.5% growth. Thus we are raising our TP to $42 from $38.”
ChannelAdvisor closed on Thursday at $37.21.
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