UPDATE: Piper Sandler Downgrades j2 Global Communications (JCOM) to Neutral

April 20, 2021 4:12 PM EDT
Get Alerts JCOM Hot Sheet
Price: $122.05 +0.79%

Rating Summary:
    9 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 4 | Down: 1 | New: 9
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(Updated - April 20, 2021 4:24 PM EDT)

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."

For an analyst ratings summary and ratings history on j2 Global Communications click here. For more ratings news on j2 Global Communications click here.

Shares of j2 Global Communications closed at $128.03 yesterday.

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Analyst Comments, Analyst PT Change, Downgrades