WISH Stock: $12 Target From BofA Securities

By Amit Chowdhry ● Jul 24, 2021
  • The shares of ContextLogic Inc (NASDAQ: WISH) have received a price target of $12 from BofA Securities. These are the details.

The shares of ContextLogic Inc (NASDAQ: WISH) have received a price target of $12 from BofA Securities. And BofA analyst Michael McGovern downgraded ContextLogic from a “Buy” rating to “Neutral.” 

McGovern noted that the company’s first two quarters as a public entity were mixed with a shift in customer acquisition strategy to higher lifetime value (LTV) and average order value (AOV) regions producing lower customer growth rate relative to prior estimates. And McGovern pointed out that the U.S. stimulus in the first half of the year had a smaller-than-expected benefit on sales.

ContextLogic had stated a number of times that its main customers are low-income households who are price-conscious about products, especially in Europe. In a survey that ContextLogic conducted last year across 2,850 customers in select countries, about 75% prioritized the price of an item over the brand and delivery time.

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