Fatima Boolani, an analyst from Citi, maintained the Hold rating on AvePoint (AVPT – Research Report). The associated price target remains the same with $18.00.
Fatima Boolani’s rating is based on a combination of factors that reflect both the strengths and challenges facing AvePoint. The company has shown positive performance with notable growth in its annual recurring revenue (ARR) and free cash flow, indicating a strong financial position. However, the outlook for the coming year presents a mixed picture, with ARR expected to exceed expectations but revenue and operating margins falling short.
The divergence between ARR and revenue growth is attributed to a shift towards a higher-quality revenue mix, which is seen as beneficial in the long term. Despite flat operating margins, the company is investing in a promising market opportunity related to data security and backup solutions. This reinvestment is viewed positively, as it aligns with a commitment to profitable growth. Overall, while there are promising short-term opportunities and potential catalysts, the mixed outlook has led to a Hold rating.
According to TipRanks, Boolani is a 5-star analyst with an average return of 16.4% and a 60.89% success rate. Boolani covers the Technology sector, focusing on stocks such as Cloudflare, AvePoint, and Akamai.