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ZIP, FIGS, FLYW...
6/21/2021 09:06am
ZipRecruiter, Figs initiations among today's top calls on Wall Street

Check out today's top analyst calls from around Wall Street, compiled by The Fly.

'DIFFERENTIATED" ZIPRECRUITER: Evercore ISI analyst Mark Mahaney initiated coverage of ZipRecruiter (ZIP) with an Outperform rating and $31 price target. Based on its AI-first approach to employer-employee match making, he views ZipRecruiter as a "differentiated player" in a large U.S. recruiting market that he views as likely to materially benefit from the secular shift to online, macro tailwinds in the U.S. and COVID tailwinds as remote work removes geographic constraints to employee finding, Mahaney tells investors.

Raymond James analyst Aaron Kessler initiated coverage of ZipRecruiter with a Strong Buy rating and $36 price target. The analyst's positive fundamental view is based on a large recruitment TAM that is increasingly shifting online, a leadership position with strong brand recognition driving a high degree of organic traffic, unique AI-powered matching technology drives better outcomes for employers and job seekers, an expectation for 15%-plus long-term revenue growth driven by increasing number of employers, attracting more job seekers,improving its matching technology, pricing optimization, and global expansion, and an expectation for 30%-plus long-term EBITDA margins, Kessler tells investors in a research note. William Blair analyst Ralph Schackart initiated coverage of ZipRecruiter with an Outperform rating and no price target. While the job market moved online close to 20 years ago, it remains fairly inefficient across multiple sites without effective tools to find the right jobs or for employers to efficiently source the best talent, Schackart tells investors in a research note. The analyst likes ZipRecruiter's "differentiated" data set and recommendation engine and leadership position in a "recruiting vertical shifting rapidly online."

'UNIQUE HIGH-GROWTH DIGITALLY NATIVE BRAND':
Goldman Sachs analyst Kate McShane initiated coverage of Figs (FIGS) with a Neutral rating and $28 price target. The analyst sees Figs as a "unique high-growth digitally native brand" that is leading the premiumization of the medical apparel industry. The brand has "strong momentum" but this is balanced by a full valuation at current share levels, McShane tells investors in a research note.

Shares were also initiated at Telsey Advisory, Oppenheimer, Barclays, KeyBanc, Morgan Stanley, BofA, Piper Sandler, Morgan Stanley and more.

'GROWTH MODE: William Blair analyst Robert Napoli initiated coverage of Flywire (FLYW) with an Outperform rating and no price target. The company "remains in growth mode," ramping up existing customers and adding new ones, and is "uniquely positioned to capitalize on modernizing accounts receivable," Napoli tells investors in a research note. Flywire provides cloud-based software and payments solutions to simplify the accounts receivable process across education, healthcare, travel, and business-to-business verticals, he notes.

Flywire was also initiated at BofA, RBC Capital, Goldman Sachs, Wolfe Research, Raymond James, Guggenheim and Citi.

SUSTAINED NEW BOAT DEMAND: B. Riley analyst Eric Wold upgraded MarineMax (HZO) to Buy from Neutral with an unchanged price target of $57. The analyst sees elevated new boat demand remaining intact after recent channel checks indicated buyers are willing to wait out this boating season to get desired models. It may not be until 2022 when the feared demand regression begins to materialize, Wold tells investors in a research note. With MarineMax shares declining by 17% since the firm's downgrade three months ago, the analyst is moving off the sidelines with 26% upside to the price target.

SELLOFF 'WAY OVERDONE': H.C. Wainwright analyst Ed Arce raised the firm's price target on Paratek Pharmaceuticals (PRTK) to $28 from $22 and keeps a Buy rating on the shares. The analyst added non-tuberculous mycobacterial to his model following last week's investor webinar. The stock has dropped 28% over the last three sessions as investors have largely focused on the delay of the second BARDA procurement. This is "simply a timing issue" and the selloff is "way overdone," Arce tells investors in a research note. The analyst sees a buying opportunity at current levels.

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