Clear Secure Poised for ARPU Growth with Pricing Strategy, Analyst Says
Portfolio Pulse from Anusuya Lahiri
Needham analyst Joshua Reilly reiterated a Buy rating on Clear Secure Inc (NYSE:YOU) with a $40 price target, citing potential ARPU growth from recent pricing strategy changes. The analyst expects increased ARPU in FY24 due to price increases, a shift in customer mix towards full-price members, and the diminishing negative impact of Amex Platinum pricing step-downs. Reilly projects Q4 revenue and adjusted EPS to slightly exceed consensus estimates. Shares of YOU traded slightly higher.
November 21, 2023 | 7:33 pm
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Clear Secure Inc is expected to see ARPU growth in FY24 due to pricing strategy changes, with a positive outlook on Q4 revenue and adjusted EPS. Needham analyst maintains a Buy rating with a $40 price target.
The analyst's reiteration of a Buy rating and a $40 price target suggests a strong conviction in the company's growth prospects, particularly with the ARPU increase and expected Q4 earnings beat. This positive sentiment is likely to influence investor confidence and could lead to a short-term increase in the stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100