One pundit tracking the company feels it has a clear path to growth in the near future.
Clear Secure (YOU +13.60%), the company behind the Clear traveler verification system that’s a common sight at U.S. airports, had an excellent session on the stock exchange Friday. Its share price ballooned by over 13%, a surge largely driven by a recommendation upgrade from a top bank.
Cleared for a buy
JPMorgan Chase unit J.P. Morgan was the upgrading party, in the person of analyst Cory Carpenter. He upgraded his recommendation on Clear Secure to overweight (buy, in other words) from his previous neutral rating. Furthermore, he also increased his price target by 20% to $42 per share.
Image source: Getty Images.
According to reports, Carpenter pointed out in his update on the stock that the company has the highest short interest in J.P. Morgan’s coverage universe.
One reason for this significant short interest might be its partnership with finance sector heavyweight American Express under a five-year pact that expires in June 2026. Contrary to many opinions about Clear Secure, Carpenter feels that the two companies will renew this arrangement, and on more favorable terms to Clear.
Today’s Change
(13.60%) $4.93
Current Price
$41.19
Key Data Points
Market Cap
$3.5B
Day’s Range
$38.59 – $42.05
52wk Range
$21.44 – $42.05
Volume
177K
Avg Vol
1.6M
Gross Margin
60.38%
Dividend Yield
1.38%
A good year for travel
The analyst also cited factors such as the 2026 World Cup, which should be revenue drivers for the broader travel industry ultimately benefiting Clear Secure. I buy into this line of reasoning, contrarian as it may be, since I generally feel that next year should be a period of growth for the sector as a whole. I’d agree with Carpenter’s new buy recommendation.
JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
