First Advantage initiated with an Outperform at William Blair

William Blair initiated coverage of First Advantage with an Outperform rating. As the largest background screener in the world, First Advantage has “best-in-class” technology and proprietary data, both of which enable a peer-leading margin profile, the analyst tells investors in a research note. The firm believes a multiyear period of declining job turnover trends and investor aversion to near-term cyclical risk has resulted in a “highly attractive valuation multiple” for the shares. Blair’s “proprietary merger model and downside scenario analysis indicates an asymmetric risk/reward opportunity.”