In a report released today, Jeffrey Silber from BMO Capital maintained a Buy rating on First Advantage, with a price target of $21.00.
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Jeffrey Silber has given his Buy rating due to a combination of factors that highlight First Advantage’s strategic positioning and growth potential. Despite recent declines in base revenue, the company has effectively utilized growth levers such as acquiring new clients and upselling existing ones, particularly with the increasing importance of Digital Identity services. This adaptability is expected to continue driving the company’s market share gains, supported by its scale, speed, and quality in a competitive environment.
First Advantage’s strong market position is further reinforced by its significant market share and capability to invest heavily in product development, which few competitors can match. The stabilization of hiring trends and the company’s strategic focus on “Just-in-time” hiring provide a neutral base for future growth. Additionally, the potential for implementing CPI pricing and expanding package density offers further upside opportunities. These factors collectively underpin Silber’s confidence in First Advantage’s ability to outperform in the market.
According to TipRanks, Silber is a 5-star analyst with an average return of 8.6% and a 59.72% success rate. Silber covers the Consumer Defensive sector, focusing on stocks such as Strategic Education, Adtalem Global Education, and Coursera.