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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Clear Secure Inc (NYSE:YOU) to $25.00 from $23.00 on Wednesday, while maintaining an Underweight rating following the company’s second-quarter results. The stock, currently trading at $31.84, has shown remarkable strength with a 40.6% return over the past six months, according to InvestingPro data.
Clear Secure posted second-quarter bookings growth of 13%, approximately 130 basis points above guidance, while revenue grew about 18%, exceeding guidance by roughly 160 basis points. These results were in line with the company’s previous performance beats. The company maintains strong fundamentals with a 62.7% gross profit margin and annual revenue of $802.8 million.
The company’s Clear Plus service grew 7.5% year-over-year to 7.6 million active members, representing 211,000 net additions, which was lower than the 297,000 additions reported in the second quarter of 2024. Management attributed the quarterly beats to growth in this service and continued pricing initiatives.
Wells Fargo analyst Michael Turrin noted that slowing growth and underlying metrics, coupled with a softer travel environment, support maintaining the Underweight rating. Management reported that overall travel declined 0.5% year-over-year during the quarter.
The analyst indicated he is awaiting signs of Clear Secure’s next growth lever before becoming more positive on the stock, despite the company providing guidance slightly above Street expectations. For deeper insights into Clear Secure’s growth potential and comprehensive analysis, including 8 additional key ProTips and detailed financial metrics, visit InvestingPro.
In other recent news, Clear Secure Inc. reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company’s revenue reached $219.5 million, surpassing analyst forecasts of $214.9 million. However, its earnings per share (EPS) fell short of expectations, coming in at $0.26 compared to the anticipated $0.30. Despite the earnings miss, investor sentiment appeared positive due to the strong revenue growth and strategic initiatives. Additionally, Stifel raised its price target for Clear Secure to $33 from $28, maintaining a Hold rating on the stock. This adjustment was influenced by Clear Secure’s strong second-quarter performance, with revenue and bookings exceeding the top end of guidance by 1-2%. The firm also noted continued momentum into the third quarter. These recent developments highlight Clear Secure’s ongoing financial and strategic activities.
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