ClubCorp (MYCC +1.7%) is initiated to a round of applause by the Street, with 6 out of 6 Buy ratings and a split of $18 and $20 PTs. Analysts are enthused by organic and M&A growth potential, a recurring subscription-based revenue model, and valuation.
Jefferies believes the golf, country, alumni, and business club operator is "in a league of its own at the cross-roads of numerous avenues of discretionary leisure spend ... MYCC generates steady, recurring revenue and boasts visible organic and external growth opportunities."
MKM Partners notes that management plans a $0.48 annual dividend beginning in 2014 (implied forward dividend yield of 3.3%) and may reduce high-yield callable debt to boost FCF. "MYCC has identified internal projects such as club 'reinventions' and pursues bolt-on M&A deals, which we believe have potential in a fragmented industry. In sum, we see encouraging parallels to the Wyndham Worldwide story, a steady performer in an unappreciated industry."