Piper Jaffray Starts Zulily, Inc (ZU) at Overweight

Piper Jaffray initiates coverage on Zulily, Inc (NASDAQ: ZU) with a Overweight rating and a price target of $44.00.

Analyst Neely Tamming commented, "We are initiating coverage of ZU shares with an Overweight rating and a $44 price target in view of what we believe will be continued new customer acquisition, growth in frequency of shopping among existing customers, and geographic expansion for Zulily driving longer-term financial targets. We expect this to result in 12%-13% adjusted EBITDA margins over time versus our current projections for this year at 5%.

She added, "Anchored in our thesis are the following: 1) a belief that consumers are continuing to migrate to on-demand entertainment in the form of shopping via vehicles like Zulily's flash sale environment over traditional visits to the mall; 2) a belief that vendors are increasingly enamored with the ease of clearing excess goods in a vibrant online specialty commerce environment; and 3) Zulily's data-driven personalization and short lead times on events help aid the business model for sustained success in our view."

For an analyst ratings summary and ratings history on Zulily, Inc click here. For more ratings news on Zulily, Inc click here.

Shares of Zulily, Inc closed at $37.23 yesterday.

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