Analyst Ratings for CDK Global Inc. (CDK)

Updated: 2017-07-27

Shares of CDK Global Inc. (NASDAQ:CDK) have received a consensus rating of Overweight from Wall Street analysts. CDK had previously received a consensus rating of Overweight a month ago.

Of the 6 analysts covering the stock, 4 gave it a buy rating, 0 issued an overweight rating, 2 issued a hold rating, 0 issued an underweight rating, and 0 gave a sell rating. Compared to three months ago, there has been an increase of 2 in the number of analysts with a positive outlook on the stock. Meanwhile, the number of analysts pessimistic about the company has increased by 0.

Investment analysts gave a few price targets for CDK. The most optimistic price target was 75, which equates to a potential upside of 13.31 percent. The minimum price target given was 70, implying potential capital losses of 5.76 percent. Note that investment analysts can be biased in their reporting on companies's ratings and price targets.

Analysts have revised their earnings estimates upwards for this quarter, by about 0 percent on average, compared to last month. That number becomes -5.26 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised upwards by 0 percent, as compared to a month ago. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 2.32 percent.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 0 analysts made positive revisions to their quarterly estimates over the past month, while 0 analysts revised their estimates downwards. Over the same time period, 0 analysts revised their FY earnings estimates upwards, while 0 analysts made negative revisions to their fiscal year's estimates.

The growth rate of CDK's earnings is estimated by analysts to be 48.37 percent. Another measure frequently examined by investors is the PEG ratio. Smaller PEG ratios are desirable, as that can indicate whether the high price level of a stock is warranted by high growth. PEG ratios below 1 are often considered desirable, but many choose to perform ratio comparisons with other companies in the industry. CDK has a PEG ratio of 0.7.

In the last 52-weeks, CDK has achieved a high of 67.49 and a low of 53.46. The current market price is above the trailing year's low by 23.81 percent, and 1.93 percent below the high. CDK has a P/E ratio of 33.77. Investors typically compare the P/E ratio to a company's peers in the industry. The CDK value stock report compares CDK to some of its peers using value stock charts. The market cap of CDK is $9.61 billion. CDK is estimated to release their earnings results for the quarter on 0000-00-00, days from today.