UPDATE: UBS Assumes Coverage on ContextLogic Inc (WISH), Downgrades to Neutral
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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."
Shares of ContextLogic Inc closed at $3.35 yesterday.
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