- JMP Securities Analyst Andrew Boone reiterated a Market Outperform rating on shares of Rover Group Inc ROVR with a Price target of $8.00.
- The analyst expected Rover’s top and bottom line results for the third quarter of FY22 to come in above consensus.
- Boone said that Y/Y growth in TSA passengers accelerated in August and September, while growth in desktop direct visits also accelerated in August and September. This leads the analyst to believe that Rover can raise the forecast for 4Q22.
- He believes Rover has multiple tailwinds over the long term as pet ownership hits an all-time high, people spend more on pet services, and international adoption continues to increase.
- Using Boone’s data model, which is based on direct desktop traffic and boarding TSA passengers, he estimates Q3 bookings at approximately 1,525.
- Rover’s disciplined marketing spend combined with bookings outperformance may result in better than expected EBITDA.
- Rover’s leading market share, its growth opportunities with new services and international expansion, and healthy cohort retention and repeat booking rates justify the analyst’s target price and multiples.
- Price promotion: ROVR shares trade 1.00% lower at $3.98 on the latest check Tuesday.
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