Vacasa, Inc. (VCSA) PT Lowered to $8 at Needham

Needham analyst Bernie McTernan lowered the price target on Vacasa, Inc. (NASDAQ: VCSA) to $8.00 (from $10.00) while maintaining a Buy rating.

The analyst commented: "We maintain our Buy rating and lower our PT to $8 after 1Q results, which featured a similar tone for the company with a challenged topline and focus on cost-cutting. We are significantly reducing our revenue estimates, resulting in lower adj. EBITDA estimates in '24E with a partial year of the cost-cutting benefit but higher in '25E given the full year benefit. Given the difficult demand environment the company is facing, we think they are doing the right thing by focusing on cost-cutting, but overall significantly increases uncertainty in our estimates. The stock is cheap trading at 5x our '25 adj. EBITDA estimate, but we note the risk reward remains wide despite depressed valuation."

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