Clear Secure Has Much To Look Forward To, Including AMEX Partnership, Says Analyst

Needham analyst Joshua Reilly initiated coverage on Clear Secure Inc YOU with a Buy rating and a price target of $40.


  • The analyst believed the company could grow its biometric identity platform well beyond its current enrollment of 14 million-plus individuals. 

  • The analyst said Clear's competitive strength derived from its platform construction, backed by best-of-breed biometric capture technology and the network effects inherent in securing an unmatched footprint in 50 of the top 100 U.S. airports.

  • Reilly thought the company could sustain a 25%+ revenue CAGR for the next several years while maintaining attractive unit economics in a Thursday note titled "CLEARd for Takeoff." 

  • The growth forecast was supported by the company's large, immediately addressable TAM and a strong recovery already underway in travel. 

  • The analyst noted travel opportunity was under-penetrated despite a snap-back in boarded passengers.

  • Clear Plus membership additions were correlated to boarded passenger growth, which was 30% YTD. 

  • The analyst believed Clear's partnership with American Express Company AXP had been a significant driver of member growth since inception in the third quarter of 2021 and expected the TSA PreCheck opportunity to begin ramping in early 2023.

  • The analyst noted recent price increases were likely to be accretive to growth, although they could also push churn to a historically high level.

  • YOU Price Action: Clear shares traded higher by 3.09% at $29.04 on the last check Thursday.

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