First Advantage Corp FA is a global leader in “attractive and growing” markets, has a robust business model and has been gaining market share, according to BofA Securities.
The First Advantage Analyst: Gary Bisbee initiated coverage on First Advantage with a Buy rating and a price target of $23.
The First Advantage Thesis: The company appears poised for double-digit profit growth and there is potential for positive estimate revisions going ahead, Bisbee said in the initiation note.
“First Advantage competes in large, fragmented and growing markets ($13bn TAM, growing ~6%),” he noted.
“Rising complexity, expanding compliance & risk mitigation needs, and the changing nature of work (more frequent job changes, rising contingent labor, etc.) are driving screening demand. And, we believe that adoption of technology, the importance of software integrations, and clients’ need for speed/accuracy/coverage are driving share to the industry leaders (including FA),” the analyst wrote.
“In the last 4-5 years, FA has implemented several key strategies that we believe have improved its competitive position and growth potential. Along with its global scale and market leadership, these efforts have accelerated growth and boosted margins,” Bisbee further stated.
FA Price Action: Shares of First Advantage had risen by 1.81% to $19.13 at the time of publication Monday.
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