UPDATE: Piper Sandler Downgrades j2 Global Communications (JCOM) to Neutral
Piper Sandler analyst James Fish downgraded j2 Global Communications (NASDAQ: JCOM) from Overweight to Neutral with a price target of $139.00 (from $122.00).
The analyst comments "We are downgrading shares of J2 from OW to Neutral, but raising our PT to $139 (prior $122). Positively, we believe the announced spin-off of the eFax business can create a sustainably higher multiple for the remaining J2 business, the DM business is performing well (particularly gaming) and can cause upside throughout 2021, and further events (spin-offs or sales) could create more shareholder value. However, the spin-off catalyst is now in the stock, dis-synergies are created from go-to-market and OpEx perspectives, larger M&A will be limited post-spin given leverage, talent is departing (particularly CFO Turicchi) to Consensus, valuation is at a 10-yr high, and the SOTP ($142) suggests more limited upside from today's levels following returns of 34% YTD and ~100% over the last 6 months. As such, we view the stock as more balanced at these levels following this catalyst, and would become more constructive at a lower level."
Shares of j2 Global Communications closed at $128.03 yesterday.
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