CoreLogic, Inc.
Thesis
CoreLogic is a high ROIC business services and data analytics company with leading niche market share that is poised to benefit from long-term secular trends in the mortgage and financial industry. The company has a strong competitive edge due to its market share, barriers to entry, and the increasing demand for transparency and regulatory compliance. Applying a 13x free cash flow multiple to a normalized levered FCF of ~$250MM, I arrive at a target price of $27/share.
Did it work?
The stock price has increased by 57.6% since the pitch, which aligns with the long thesis that CoreLogic would benefit from its competitive advantages and market trends. Given that 190 months is well beyond a typical investment horizon, the positive return indicates that the thesis played out effectively.
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