UBS upgrades Clover Corp to Buy from Neutral rating with the target price dropping to $2 from $2.10.
The broker views the stock as a recovery play offering a best-of-breed product and a unique growth story despite a covid-hit weak result with revenues down -22% versus last year.
The company’s FY21 revenue guidance also implies a -16-37% downgrade to UBS’s second-half expectations. Even so, the broker expects a gradual recovery with FY20 revenues and net profit expected to return by FY23.
Sector: Health Care Equipment & Services.
Target price is $2.00.Current Price is $1.46. Difference: $0.54 – (brackets indicate current price is over target). If CLV meets the UBS target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
