The one that we're going to take a look at today is GreenSky (GSKY) as its quiet period expires, allowing firms involved with its IPO to publish research and estimates on the company for the first time. As we discuss in more detail below, a majority of the initiations landed on the bullish side, which has the stock pushing higher so far this morning.
For some background, GSKY is a provider of point-of-sale payment and financing technology. The company had 12,000 merchant accounts on its platform at the end of March 2018. The majority of the company’s merchant partners are in the home improvement and elective healthcare markets. The company believes it can grow its presence in the home improvement market, where customer spending totaled $315 billion in 2017.
GSKY’s system offers financing and payment solutions, which could be enticing to merchants looking to increase their sales volume. GreenSky’s payment platform is designed to be deployed on mobile devices like tablets, etc.
Finally, its technology has been used to process about 1.70 million transactions amounting to more than $12 billion. Transaction volume grew 31% in 2017. Transaction volume during Q1 2018 totaled $1.00 billion, up 47% year-over-year.
Based on those aforementioned initiations, it's safe to say that most analysts are feeling bullish on the stock. One that clearly stands out is Goldman Sachs' Buy rating and $31 price target -- one of the highest price targets on the Street. The combination of that price target -- 28% above the current price -- and the prominence of Goldman Sachs is likely to catch many traders' attention.
SunTrust appears to be the most bullish, though, also assigning a Buy, but, with an even more aggressive $35 price target, representing upside of 44%. Also on the bullish side was JP Morgan and Morgan Stanley, both going with an Overweight and price targets of $30 and $29, respectively.
There are only a couple more cautious notes, with BofA Merrill's Neutral and $26 target offsetting some of the positive vibes. All in all, though, sentiment is clearly positive for GSKY and the stock is reacting favorably to the news. The next big event for GSKY will be its first quarterly report as a public company, but, there is not a confirmed date yet for that.