UPDATE: Canaccord Initiates Coverage On Zulily

Canaccord initiated a Buy rating and $45 price target on Zulily Inc ZU in a report issued Friday.

Analysts led by Michael Graham believed that "zulily is early with its unique value proposition to the affluent but value-conscious mom.  [The company] has turned shopping into a daily, serendipitous experience beginning promptly at 9:01 a.m., offering moms entertainment and shopping for non-mainstream fashion bargains."

Graham noted that vendors "get valuable exposure to their target customers with economics that are competitive with those from a conventional retailer" and that cohort analysis suggests "potential revenue upside."

Risks included customers regarding "zulily’s daily events as distracting; other flash-sale companies have faced difficulty scaling; zulily may not be able to source enough of the right products at the right times," according to Graham.

The $45 price target is "based on 40x our 2018 EPS estimate of $1.69, discounted to present at a rate of 10.4 percent."

Zulily Inc recently traded at $37.37, down 0.22 percent.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsCanaccordMichael Graham
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!