Clear Secure stock price target raised to $37 at Telsey on strong 2Q25 results

Published 06/08/2025, 12:08
Clear Secure stock price target raised to $37 at Telsey on strong 2Q25 results

Investing.com - Telsey Advisory Group raised its price target on Clear Secure Inc (NYSE:YOU) to $37.00 from $32.00 on Wednesday, while maintaining an Outperform rating following the company’s better-than-expected second-quarter results. The stock, which has gained over 40% in the past six months and currently trades at a P/E ratio of 18.8x, appears slightly undervalued according to InvestingPro analysis.

Clear Secure reported a 17.5% increase in total revenue to $219.5 million for the second quarter of 2025, exceeding both Telsey’s forecast of approximately $215.2 million and the FactSet consensus of $215.0 million. The company had previously guided for revenue between $214 million and $216 million.

Adjusted EBITDA rose 26.6% to $60.1 million, surpassing Telsey’s target of $53.0 million and the FactSet consensus of $52.6 million. The strong performance reflected continued gains from Clear Plus as well as new initiatives, including TSA PreCheck and greater usage of its technology platform.

For the third quarter of 2025, Clear Secure guided for total revenue growth of 12.4% to 13.9%, reaching $223 million to $226 million, ahead of the FactSet consensus of $222.3 million. Total (EPA:TTEF) booking growth is expected to be 12.2% to 14.5%, reaching $253 million to $258 million compared to the FactSet consensus of $245.1 million.

Telsey noted that Clear Secure has been certified by the Department of Homeland Security as an issuer of Real ID, allowing travelers to create a free digital Real ID through the Clear app, initially for members but expanding to all US travelers this month.

In other recent news, Clear Secure Inc. reported its second-quarter 2025 earnings, showcasing a mixed performance with revenue surpassing expectations. The company’s revenue reached $219.5 million, exceeding forecasts of $214.9 million, while earnings per share (EPS) fell short at $0.26 compared to the expected $0.30. Despite the earnings miss, the company demonstrated strong revenue growth and strategic initiatives. Wells Fargo (NYSE:WFC) raised its price target for Clear Secure to $25, maintaining an Underweight rating, following the company’s second-quarter results, which included a 13% growth in bookings and an 18% increase in revenue. Stifel also adjusted its price target to $33 from $28, citing Clear Secure’s strong second-quarter performance and continued momentum into the third quarter, while maintaining a Hold rating. These developments reflect positive analyst sentiment despite the mixed earnings report. The company’s results have exceeded guidance, contributing to the adjusted price targets. Investors remain attentive to Clear Secure’s financial performance and strategic direction.

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