UPDATE: Goldman Sachs Starts ClubCorp Holdings (MYCC) at Neutral
- Wall St. rises amid robust GDP data, mixed earnings
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- AbbVie (ABBV) Tops Q3 EPS by 1c; Boosts FY16 EPS Outlook
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
(Updated - September 26, 2016 9:28 AM EDT)
Goldman Sachs initiated coverage on ClubCorp Holdings (NYSE: MYCC) with a Neutral rating and a price target of $16. Analyst Stephen Grambling said with strategic options limited and valuation modestly below peers, a Neutral rating is warranted.
"We believe MYCC has the opportunity to continue to roll up a fragmented golf industry and drive growth via both increased ONE penetration (ONE is MYCC’s benefits program) and 'reinventions.' High recurring revenue via membership dues should also help mitigate macro pressure. However, CROCI is muted given low margins and the high capital intensity of the business. Additionally, while “reinventions” have driven EBITDA growth, the returns on that spend are less clear amidst constant acquisitions and disruptions. Lastly, the golf industry continues to face headwinds and MYCC’s geographical footprint positions it neutral at best near term given exposure to a weak TX economy," said Grambling.
Shares of ClubCorp Holdings closed at $16.12 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Leerink Partners Downgrades McKesson (MCK) to Market Perform
- Oppenheimer Raises Price Target on Wex, Inc. (WEX) Following 3Q Report
- Alphabet (GOOGL) (GOOG) Bullish View Reiterated at Mizuho Post Q3, Remains Top Pick
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesGoldman Sachs
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!