Do Not Think of Clover Stock as a Bargain Yet
The meme mania took the stock as high as $28.85 last year in June and it has been falling since then. CLOV stock is down more than 80% from the highs. Although the revenue has improved, investors are worried about the profitability of the business.
SVB Leerink has a price target of $2.50 for the stock with a market perform rating. Canaccord Genuity Group started coverage for the stock in February with a buy rating and a target of $6. Further, out of five analysts on TipRanks, there is one buy and one sell rating for the stock, while three have a hold rating with a target price of $4.10, a 30% upside from the current level.
There is little news about the company after it delivered quarterly earnings in February, but it did provide an uplifting guideline. The company is set to release the next earnings report next month and this is when we will get an insight into the fundamentals. My InvestorPlace colleague Muslim Farooque believes that despite the risks, CLOV stock has upside potential.
The company has expansion plans for this year and the numbers for the coming quarter could improve the bottom line. For investors looking for a great penny stock, now is not the time to make the move. Wait for the results before you put your money on CLOV stock. The risk is high and a lot is at stake.
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On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
