JOAN - JoAnn rallies after Telsey points to attractive entry point

Telsey Advisory Group launches coverage on JoAnn (JOAN) with an Outperform rating."JOAN began trading on the NASDAQ on March 12, 2021, when its IPO was priced at $12 vs. its target IPO range of $15-$17. While the company will be lapping tough comparisons in 2021, we believe its current valuation provides an attractive entry point, particularly for value seeking investors. For example, JOAN's FY1 P/E multiple of ~5x based on our 2021 EPS estimate of $2.37 compares with a peer group average of ~17x and MIK's takeout P/E multiple of ~9x."JoAnn is noted to have been a big retail beneficiary of COVID-19, as visible in its 2020 comp of 23.5% and adjusted EBITDA growth of ~111%. The company also acquired over 8M new customers  through Q3. While less DIY engagement and difficult comparisons are forecast to lead to a comp of -7% in 2021, the two-year stacked comp of 16.5%

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JoAnn rallies after Telsey points to attractive entry point