CPXGF - Loyalty Ventures is a 'Buy' amid 50% decline on Wednesday - Needham
Loyalty Ventures (NASDAQ:LYLT -52.3%) stock is a contrarian opportunity as it gets chopped in half on Wednesday, per Needham & Company. Shares of the Dallas-based consumer loyalty solutions provider plummeted on Wednesday after Sobeys, the second largest grocery chain in Canada and one of the company’s key partners, announced it is transitioning away from their mutual partnership. Instead, the company indicated it will partner with Scotiabank (BNS) and Cineplex (OTCPK:CPXGF) to launch a competing rewards program beginning in August. The share price reaction was stark, with shares falling well over 50% at intraday lows. However, this is a far steeper decline than is deserved, according to Needham analyst Kyle Peterson. “We believe that the impact on the P&L will be manageable given the gradual pace of the transition and revenue recognition in the Air Miles business,” Peterson wrote to clients. “Despite the disappointing news, we believe that the sizable decline in
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Loyalty Ventures is a ‘Buy’ amid 50% decline on Wednesday - Needham