DA Davidson initiates Clear Secure stock with Buy rating, $45 price target

Investing.com - DA Davidson initiated coverage on Clear Secure Inc (NYSE:YOU) with a Buy rating and a $45.00 price target on Monday. The stock, currently trading at $37.82, has shown impressive momentum with a 53.54% return over the past six months and is trading near its 52-week high of $38.88.

The research firm’s price target implies a 21x EV/EBITDA multiple based on its 2026 estimates for the company, which provides identity verification services primarily at airports. According to InvestingPro data, Clear Secure currently trades at an EV/EBITDA of 19.32x, with a healthy gross margin of 62.97%.

Clear Secure currently operates 166 lanes across 59 airports throughout the United States, establishing what DA Davidson describes as a competitive moat that enables solid free cash flow generation and expanding operating margins.

The firm expects Clear Secure to achieve high-single to low-double-digit revenue growth over the mid-term as the company expands into adjacent categories.

DA Davidson noted that recent initiatives in business-to-business services and additional verticals for the Clear Plus subscription service are "currently under-appreciated" and provide an opportunity for the company to reaccelerate revenue growth.

In other recent news, Clear Secure reported a 17.5% increase in total revenue, reaching $219.5 million for the second quarter of 2025. This exceeded both Telsey Advisory Group’s forecast of approximately $215.2 million and the FactSet consensus of $215.0 million. Following these results, Telsey Advisory Group raised its price target for Clear Secure to $37.00 from $32.00, maintaining an Outperform rating. Additionally, Clear Secure has expanded its TSA PreCheck enrollment services to over 190 Staples stores across the United States. The company also announced that travelers from the United Kingdom, Canada, Australia, and New Zealand can now access its CLEAR+ expedited security service at U.S. airports. In the healthcare sector, Clear Secure has partnered with Nordic to enhance healthcare identity security and is developing an integration for Epic’s Identity Verification for community health providers. These expansions and partnerships highlight Clear Secure’s efforts to broaden its reach in both travel and healthcare sectors.

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