Wanda Sports stock looks like a beautiful swing trade setup on August 21, 2019, after the stock’s punishing pullback. WSG stock IPO’d on July 26, 2019, at $8, and then plunged 36%. WSG stock now trades at $4.44 a share as of August 21, 2019.
WSG stock is rounding up nicely for an excellent swing long trade as analysts have come out in full-throat support of the company.
Deutsche Bank analyst Bryan Kraft started coverage of Wanda Sports stock with a Buy rating on August 21, 2019, and set an $11 price target, stating that he views the company as well positioned for growth as the global market leader in mass participation sports. He forecasts an 11% revenue and 15% adjusted EBITDA CAGR for the period 2019-2023, which includes forecasted acquisitions as Kraft noted that mass participation sports is a “highly fragmented industry.”
Citi analyst Jason Bazinet started coverage of Wanda Sports stock with a Buy rating on August 21, 2019, and set a $5.50 price target, stating that he sees the company benefiting from programmers’ desire for live content like sports and news as video content moves to the cloud via subscription-video-on-demand services. He says live events “have emerged as safe havens amidst the broader threats from digitization,” which can help Wanda. Bazinet said that Wanda Sports shares could more than double from current levels if the stock commands an appropriate multiple of 9 times 2020 EV-EBITDA.
These bullish analyst comments sent WSG stock ripping higher on August 21, 2019.
The pullback in WSG stock plus the major analyst upgrades today has set the table for a beautiful swing long trade IMO. I’m adding WSG stock to the long-term buy and hold GST Portfolio.
Disclosure: We do not hold any position in WSG stock.