UPDATE: Stifel Initiates Coverage on Care.com on Category Leader Position

In a report published Tuesday, Stifel analyst Jordan Rohan initiated coverage on Care.com (NYSE: CRCM) with a Hold rating.

In the report, Stifel noted, “Care.com helps consumers find the best child care, elder care, and other services, replacing word-of-mouth, personal referrals, or agencies with an elegant two-sided marketplace. Care.com is poised to grow rapidly for the next 5+ years without a significant competitive response, enabling the company to grow into its current premium valuation. That said, we are initiating coverage of Care.com with a Hold rating on the shares as we believe this upside potential is already reflected in the share price, and see $23-$29 as a fair value range, all else being equal.”

Care.com closed on Friday at $25.41.