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Fly News Breaks for July 31, 2018
CRCM
Jul 31, 2018 | 08:48 EDT
Craig-Hallum analyst Jason Kreyer says that after two straight years of scaling back direct marketing spend, Care.com is poised to reinvigorate customer acquisition which will drive revenue acceleration in Q4 and beyond. The analyst continues to believe a measured approach to growth investments will drive a healthy combination of EBITDA margin expansion with revenue growth moving into the 15% range over the next several quarters. Shares pulled back on the complications around EBITDA guidance and business metrics confusion, which he believes has created an attractive entry point ahead of consistent growth improvements. Kreyer reiterates a Buy rating and $24 price target on the stock.
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