2023-05-26 09:15:32 ET
Clear Secure’s ( NYSE: YOU ) stock was rated as a Hold in resumed coverage by analysts at Stifel. They said the biometrics identification company operates in an industry with a high barrier to entry, but its growth may be limited.
“We’re mixed on the opportunity from here as we see plenty of positives and some potential headwinds going forward,” Mark Kelley, analyst at Stifel, said in a May 25 report.
Growth drivers for Clear Secure ( YOU ) include a collaboration with American Express ( AXP ) to offer cardholders a free or discounted membership in Clear, whose service includes expedited security clearance at airports in the United States.
However, growth may be limited in the United States as some travelers choose the U.S. Transportation Security Administration’s Precheck service instead of subscribing to Clear. Clear Secure ( YOU ) also faces challenges in expanding internationally because of daunting regulatory hurdles, the report said.
“We’re fans of Clear Plus as users ourselves, and we view the consumer experience as unmatched,” Kelley said. “We also believe it would be quite a tall order for a competing product to not only gain access to as many domestic airport terminals as Clear, but also achieve the same levels of certification required to operate such a business.”
Stifel set a price target for Clear Secure ( YOU ) of $28 a share, based on a multiple of 5.5 times estimated sales of $673 million in 2024.
Clear Secure's ( YOU ) stock has declined 9% so far in 2023, contrasting with a less than 1% gain for the Standard & Poor's 400 midcap stock index ( SP400 ).
More about Clear
- CLEAR to enhance digital safety for LinkedIn users
- Clear Secure beats Q4 top and bottom line estimates; initiates Q1 and FY23 outlook
For further details see:
Clear Secure rated Hold in resumed coverage at Stifel