UPDATE: UBS Assumes Coverage on ContextLogic Inc (WISH), Downgrades to Neutral

December 2, 2021 4:18 AM EST
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Price: $2.45 -0.81%

Rating Summary:
    3 Buy, 8 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 32 | New: 34
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(Updated - December 2, 2021 4:34 AM EST)

UBS analyst Kunal Madhukar assumes coverage on ContextLogic Inc (NASDAQ: WISH) with a Neutral rating and a price target of $4.00.

The analyst comments "We assume coverage of Wish with a Neutral rating and a $4 PT. We estimate that it continues to see revenue declines, looking for (18)% in 2021 and (23)% in 2022 vs. the Street at (17)% and (16)% respectively. While the Street expects 2022 to see improvements from 2021, we think that this is too optimistic given the commentary to lean into S&M expenses (i.e., big customer acquisition campaigns) in 2H22. That being said, we look for Wish to compound revenue at an 8% CAGR from '21-25, in line with the Street. Real-time data from comScore points to continued weakness in user growth and we could turn more positive in the event that we start to see a stabilization of users. We could get more negative in the event that user trends worsen and the company continues to miss on execution."

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 $3.35 yesterday.


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