Forge Global Holdings (FRGE – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Devin Ryan from JMP Securities reiterated a Buy rating on the stock and has a $5.00 price target.
Devin Ryan’s rating is based on the observation that Forge Global Holdings is in the early stages of a cyclical recovery, which is supported by several structural improvements in the market. These include the growth of market participants, advancements in technology, and the introduction of new products that are expected to reduce transaction friction. Additionally, Forge is focusing on controlling expenses and has surpassed its original cost savings goal, indicating effective management.
From a long-term perspective, Ryan sees Forge as a leader in the growing private markets sector. As companies remain private longer, the liquidity needs of employees and early investors are expected to increase, suggesting that the market will continue to mature. This maturation, along with improvements in market automation and standardization, is likely to lead to increased market turnover. Despite the complexities in predicting the exact recovery path, Ryan is encouraged by the narrowing bid-ask spreads and improving private valuations, which contribute to a positive outlook for Forge.
Ryan covers the Financial sector, focusing on stocks such as Lazard, LPL Financial, and Raymond James Financial. According to TipRanks, Ryan has an average return of 25.2% and a 68.80% success rate on recommended stocks.
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