First Advantage shares plummet after Jefferies downgrade

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First Advantage Stock Intrinsic Value – First Advantage ($NASDAQ:FA) is a provider of background check and drug testing services. The company’s shares fell 9.5% on Tuesday after Jefferies downgraded the company from “Buy” to “Hold” and cut its price target from $19 to $13. First Advantage has been under pressure recently as the company has been embroiled in a class action lawsuit alleging that it failed to properly disclose the status of job applicants’ background checks. Jefferies’ downgrade reflects the increased uncertainty surrounding the case. Despite the recent sell-off, First Advantage shares are still up over 30% year-to-date. The company’s strong financials and growth prospects remain intact.

However, with the legal case hanging over its head, investors are understandably cautious about the stock.

Market Price

First Advantage shares plummeted on Tuesday after Jefferies downgraded the stock. The media exposure till now has been mostly positive, but the downgrade has spooked investors. The stock opened at $14.2 and closed at $13.6, a drop of 6.9% from the previous closing price of $14.6. This is a worrying trend for the company, and it remains to be seen how it will recover from this setback.

VI Analysis – First Advantage Stock Intrinsic Value

Company’s fundamentals are a reflection of its long term potential. The simple analysis on FIRST ADVANTAGE by VI app reflects this. The fair value of FIRST ADVANTAGE shares is around $18.6, calculated by VI Line. Now FIRST ADVANTAGE stock is traded at $13.6, undervalued by 27%.

VI Peers

Its competitors include Zeuus Inc, Anacomp Inc, and Spire Global Inc.

– Zeuus Inc ($OTCPK:ZUUS)

Zeuus Inc is a publicly traded company with a market capitalization of 527.55 million as of 2022. The company has a return on equity of 1191.01%. Zeuus Inc is a provider of online marketing and advertising services. The company offers a range of services including search engine optimization, pay per click management, and social media marketing. Zeuus Inc is headquartered in San Francisco, California.

– Anacomp Inc ($OTCPK:ANMP)

Anacomp Inc is a data management company that provides solutions for storing, managing, and analyzing data. The company has a market cap of 3.74M as of 2022 and a return on equity of 55.96%. Anacomp Inc’s products and services include data storage, data management, data analysis, and data security. The company serves customers in the United States, Canada, and Europe.

– Spire Global Inc ($NYSE:SPIR)

Spire Global is a data and analytics company that uses data from its constellation of 75 nanosatellites to provide insights into global maritime, aviation, and weather patterns. The company has a market cap of 180.46M as of 2022 and a return on equity of -7.96%.

Summary

First Advantage is a provider of background check and drug testing services. The company offers a variety of services to help employers screen job applicants, including criminal background checks, employment verification, and drug testing. First Advantage also provides tenant screening services to landlords and property management companies.

The company has a market capitalization of over $1 billion. First Advantage is a great stock for investors who are looking for growth potential.