UPDATE: Oppenheimer Downgrades ContextLogic Inc (WISH) to Underperform

Oppenheimer analyst Jason Helfstein downgraded ContextLogic Inc (NASDAQ: WISH) from Perform to Underperform with a price target of $4.00.

The analyst commented, "We believe the company is facing a perfect storm of negative challenges heading into 4Q. China accounted for substantially all marketplace/logistics in FY20, exposing WISH to a 393% increase in shipping costs. Further, with ad budgets shifting to Android, digital ad costs have remained elevated throughout 3Q, impacting customer acquisition/retention. Average CPMs are up 80% in 3Q21E while Similarweb data highlights 32% q/q decline in Android app downloads. Our $4x target assumes 0.7x FY22 sales, in line with slow growth marketplaces (GRPN, OSTK)."

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

Shares of ContextLogic Inc closed at $5.35 yesterday.

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