Navan, Inc. (NAVN) is set to report third-quarter earnings after the closing bell on Monday, December 15, and Wall Street's most accurate analysts have some interesting opinions about where the stock is headed.
The Palo Alto, California-based company is expected to post a quarterly loss of 17 cents per share on revenue of $182.09 million, according to analyst consensus. While that's still red ink on the bottom line, it's worth noting that Navan has attracted considerable attention from major Wall Street firms recently.
A Wave of Bullish Initiations
On November 24, five prominent analysts initiated coverage on Navan, and they all came out swinging with positive ratings. Here's the rundown of what the top-rated analysts are saying:
Rosenblatt analyst Blair Abernethy kicked things off with a Buy rating and a $30 price target. With an accuracy rate of 71%, Abernethy sees the most upside potential among the group.
Goldman Sachs analyst Kash Rangan also assigned a Buy rating, setting a price target of $29. Rangan brings a 67% accuracy rate to the table.
Three other analysts issued Outperform ratings with slightly more conservative targets. Oppenheimer's Jed Kelly, who has a 70% accuracy rate, set a $25 price target. Citigroup's Steven Enders, with a 69% accuracy rate, came in at $26. And Mizuho's Siti Panigrahi, with a 60% accuracy rate, also targeted $25.
What's striking here is the unanimous bullish sentiment. When multiple analysts with solid track records all initiate coverage on the same day with positive ratings, it's usually because something interesting is happening with the company.
Recent Business Developments
That "something interesting" might be partnerships like the one Navan announced on November 24. The company revealed that Frasers Group selected it as its global partner for travel and expense management. These kinds of enterprise wins can be meaningful for a company operating in the corporate travel space.
The stock closed at $13.92 on Thursday, down 0.4% for the session. If you're doing the math, that means analysts are projecting anywhere from 80% to 115% upside from current levels, depending on whose price target you believe.
Of course, projections are just that—projections. The real test comes Monday evening when Navan reveals how the third quarter actually played out and what management has to say about the road ahead.