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As Seen On FB: Home Shopping Network Learns To Leverage Social Media

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As Seen On FB: Home Shopping Network Learns To Leverage Social Media

Wunderlich has raised its price target on the shares of HSN, Inc. (NASDAQ: HSNI) by $2 to $42, saying the interactive multichannel retailer is devising right strategies to leverage social media such as Facebook Inc (NASDAQ: FB).

Analyst Matthew Harrigan noted that HSN is working closely with Facebook on customer acquisition and putting out the right video content along with Buy buttons for platforms like Facebook, Twitter Inc (NYSE: TWTR) and YouTube.

As Seen On Facebook

“There is ample HSN video on Facebook and it is generally dedicated content that has been facilitated by new creative talent acquired from YouTube and BuzzFeed,” Harrigan wrote in a note.

Harrigan also welcomed HSN’s regularly scheduled programming for Facebook just like for TV, with about 90 Facebook Live segments to date. HSN is also working strategically in leveraging Instagram with beauty brands.

The 2017 Danica Patrick activewear launch in social media and mobile before it was on TV reinforces this strategy.

ICR Conference, Marketing Strategies

Further, the analyst pointed out that many of the retailing and consumer trends laid out at this week's ICR Conference fit perfectly with HSN's biz attributes, especially the advent of mobile as a frequent first touchpoint for the consumer and the importance of social media.

Harrigan, who has a Buy rating on HSN shares, expects 3.3 percent annual sales growth at HSN and 1.9 percent at Cornerstone through 2020. That said, the analyst anticipates “just backloaded” 2.0 percent and 1.6 percent top line growth in 2017.

“We believe that the stock currently prices in just 50 basis points of annual growth through 2020 – although this admittedly assumes 1 percent growth normalization post forecast,” Harrigan added.

Shares of HSN closed Thursday’s trading at $33.65.

Latest Ratings for FB

DateFirmActionFromTo
Jun 2021KGI SecuritiesInitiates Coverage OnOutperform
May 2021HSBCMaintainsReduce
May 2021CitigroupDowngradesBuyNeutral

View More Analyst Ratings for FB
View the Latest Analyst Ratings

 

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