3 Upgrades In e-Commerce Moving The Market
Just because eCommerce has fallen out of the media spotlight don't think it's not a driving force of the global economy. If nothing else, the COVID-19...
e-Commerce Is Big Business For These Companies
Just because eCommerce has fallen out of the media spotlight don't think it's not a driving force of the global economy. If nothing else, the COVID-19 pandemic proved without a doubt that we need not only the Internet but e-Commerce. Today we're looking at three stocks that span a range of e-Commerce industries from payment systems, to marketing solutions, to vertical-specific niche sales in high-growth markets.
Businesses Are Thriving With Thryv Holdings
Thryv Holdings (NASDAQ: THRY) has been on a tear over the past 6 to 8 months due to robust demand for e-commerce and digital marketing services. The stock is up more than 200% in the last six months and likely headed higher based on activity in the analyst community. The latest shout-out comes from Needham who initiates the stock at a Buy. According to the firm, the marketing software space has a significant long-term growth trajectory and Thryv specifically should get a boost from its legacy Yellow Pages operation. The Yellow Pages operation may seem outdated but Needham describes it as a " large, cash-generating, low-cost customer acquisition channel that ensures steady demand from established companies".
All three of the analysts covering the stock rate it a Buy with a consensus target of $42 or about 17% upside. The technicals alone imply a price target of $48 assuming, of course, the market can sustain its breakout to new highs. Thryv Holdings is expected to report earnings in early August and deliver low-to-mid single-digit sequential Revenue growth.
DLocal Limited Is Fintech For Emerging Markets
DLocal (NASDAQ: DLO) is a payment processing platform operating globally and headquartered in Montevideo, Uruguay. The platform allows merchants to connect with consumers in emerging markets, accept and send payments, and settle funds. The company services multiple industries including marketplaces, online retail, financial, and travel. The company went public less than a month ago and shares of the stock have been skyrocketing ever since. Up 66% from the post IPO low, Bank of America analyst Jason Kupferberg initiated the stock at a buy with a price target of $55.
"DLO has an enviable customer base comprising some of the largest and fastest-growing enterprises in the world (i.e. AMZN and GOOG) and a very attractive blend of organic growth and profitability, both well in excess of peers," Kupferberg writes in a note to clients.
Four other major sell-side analysts are out with initiated coverage but the sentiment is not mutual. Three of the ratings are only Neutral with a consensus near $42. Morgan Stanley is the most bullish with an Overweight rating and a price target of $72.
The Original BARK Company Is As Good As Its Bite
If you like the pet care industry and we think you should, you're going to love the Original BARK Company (NYSE: BARK). The firm is a specialty petcare company focused on dogs that delivers subscription services like a toy of the month along with other more mainstream dog care needs. Bank of America initiated the company with a Buy rating following the post-IPO quiet period calling out several factors that we ourselves favor. These include the greater pet category, vertical integration, an omnichannel sales presence, and a dog-specific strategy. Citigroup did not venture to offer a price target but Canaccord Genuity did. Canaccord sees the stock trading near $16 or about 60% upside from recent price action. We view the stock as trading at or very near the bottom right now, and a great value for investors.
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