Piper Sandler Sees Huge Upside In VIZIO Despite Price Adjustment

Piper Sandler analyst Thomas Champion lowered the price target on VIZIO Holding Corp VZIO to $29 from $31, implying a 48% upside, and reiterated an Overweight.
The company's Q3 results "were mixed" with logistics challenges "denting" device unit potential, Champion notes.
More importantly, however, Vizio's platform growth remains strong at 130% year-over-year, and the Q4 guidance is substantially above forecasts, adds the analyst.
VIZIO's Q3 FY21 revenue of $588.3 million missed the consensus of $595.3 million. EPS loss of $(0.10) was in line with the consensus.
Platform+ net revenue increased 134% Y/Y to $85.9 million. SmartCast Active accounts increased 35% Y/Y to 14.4 million. Average Revenue Per User increased 91% Y/Y to $19.89.
VIZIO sees Q4 Platform+ revenue of $100 million - $110 million.
Price Action: VZIO shares traded higher by 12.7% at $19.53 on the last check Wednesday.

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