Clear Secure (YOU +0.47%), the company behind the Clear traveler verification system that's a common sight at U.S. airports, had an excellent session on the stock exchange Friday. Its share price ballooned by over 13%, a surge largely driven by a recommendation upgrade from a top bank.
Cleared for a buy
JPMorgan Chase unit J.P. Morgan was the upgrading party, in the person of analyst Cory Carpenter. He upgraded his recommendation on Clear Secure to overweight (buy, in other words) from his previous neutral rating. Furthermore, he also increased his price target by 20% to $42 per share.
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According to reports, Carpenter pointed out in his update on the stock that the company has the highest short interest in J.P. Morgan's coverage universe.
One reason for this significant short interest might be its partnership with finance sector heavyweight American Express under a five-year pact that expires in June 2026. Contrary to many opinions about Clear Secure, Carpenter feels that the two companies will renew this arrangement, and on more favorable terms to Clear.
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Key Data Points
A good year for travel
The analyst also cited factors such as the 2026 World Cup, which should be revenue drivers for the broader travel industry ultimately benefiting Clear Secure. I buy into this line of reasoning, contrarian as it may be, since I generally feel that next year should be a period of growth for the sector as a whole. I'd agree with Carpenter's new buy recommendation.
