Needham & Company Adds Clear Secure Inc (YOU) to Conviction List, Top 2024 Pick

Needham & Company analyst Joshua Reilly reiterated a Buy rating and $40.00 price target on Clear Secure Inc (NYSE: YOU)

The analyst comments "We make Clear Secure our "Top Pick" for 2024 and add it to Needham's Conviction List. Investors have not properly modeled in the impact of the Family price increases enacted late in 2023, in our view. Importantly, we expect the final price increase of $70 to $99 per year to be highly accretive even assuming an elevated level of churn as displayed below in Figure 1. Separately, we believe operating leverage and cash flow growth in 2024 will exceed investor expectations as the company sees benefits from its recent investment cycle, which peaked in 2023. Also, we expect the PreCheck offering/bundle to launch imminently and provide additional upside to consensus expectations in FY24. Overall, we view shares trading at 12x EV/FCF on our FY24 estimate as too cheap given our expectations for 20%+ bookings growth."

For an analyst ratings summary and ratings history on Clear Secure Inc click here. For more ratings news on Clear Secure Inc click here.

Shares of Clear Secure Inc closed at $20.44 yesterday.

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