Analyst Joshua Reilly of Needham maintained a Buy rating on Clear Secure (YOU – Research Report), retaining the price target of $45.00.
Joshua Reilly has given his Buy rating due to a combination of factors including the recent strategic pricing changes by Clear Secure. The company has started charging United Premier 1K members for their CLEAR+ service, which was previously free for this group. This new pricing strategy is expected to generate an additional $15 million in annual bookings, providing a notable boost to the company’s revenue.
Furthermore, the analyst anticipates that similar pricing adjustments for Delta Diamond members will follow, further enhancing revenue potential. This pricing initiative is projected to contribute a significant tailwind to Clear Secure’s financial performance, with an estimated $8.75 million impact on FY25 bookings. These developments have led to an updated bookings growth estimate of 12.0%, reflecting the positive influence of the pricing actions.