Advantage Solutions Snaps Up Brandshare; Street Sees 46% Upside

Shares of Advantage Solutions, Inc. (ADV) closed 4.6% higher after the company announced the acquisition of omnichannel brand experience provider Brandshare.

Advantage provides outsourced sales and marketing solutions to companies in the consumer goods and retail space. Brandshare offers product sampling and digital engagement initiatives across e-commerce, venues and events.

Management Weighs In

Jill Griffin, the CEO of Advantage Solutions, commented, “Brandshare’s expertise and capabilities highly complement Advantage’s own, including our industry-leading in-store sampling services and our suite of sampling innovations, such as online grocery pickup and delivery sampling and digital product demonstrations, which we quickly scaled up during the pandemic to help our clients connect with shoppers in new ways.”

Brandshare CEO, Alan Verdun, added, “Advantage shares our mindset: Listen to consumer goods manufacturers and retailers, identify opportunities to grow their business, and deliver unique, high-return solutions that build consumer demand.”

Analyst’s Take

Morgan Stanley analyst Toni Kaplan has reiterated a Hold rating on the stock but decreased the price target to $6 from $7.

Overall, the Street has a Hold consensus rating on Advantage based on three unanimous Holds. The average Advantage price target of $6.67 implies a potential upside of 46.6%. That’s after a nearly 44% slide in the share price so far in 2022.

What Do Insiders’ Actions Signal?

At the same time, TipRanks data indicates insiders have sold Advantage shares worth $168,100 in the past three months, indicating a negative insider confidence signal based on six unique transactions by insiders.

Closing Note

Investors reacted positively to the Brandshare acquisition, with a near 5% gain in the share price. Brandshare’s omnichannel expertise further bolsters Advantage’s capabilities while also bringing on-board Brandshare’s one-of-a-kind engagement campaign creation with entertainment companies.

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