William Blair analyst Christopher Kennedy has maintained their bullish stance on MLNK stock, giving a Buy rating on March 7.
Christopher Kennedy has given his Buy rating due to a combination of factors that highlight MeridianLink’s potential for growth and stability. The company has shown resilience despite challenges in consumer lending and mortgage origination, maintaining a strong competitive position. The recent financial disclosures and consistent improvement in net revenue retention, reaching 101.6%, demonstrate the company’s ability to sustain its business momentum.
Management’s focus on scaling the business to achieve a Rule-of-50 status, alongside a target of sustainable adjusted EBITDA margins, underscores their commitment to long-term growth. Although the macroeconomic environment remains uncertain, the company’s strategic initiatives, such as cross-selling through the MeridianLink One platform, are expected to drive future revenue growth. The projected midteens revenue growth in a normalized environment further supports the Buy rating, as it indicates potential for significant upside in the company’s financial performance.
According to TipRanks, Kennedy is an analyst with an average return of -5.6% and a 28.57% success rate. Kennedy covers the Technology sector, focusing on stocks such as MeridianLink, Evertec, and Payoneer.
In another report released on March 7, Raymond James also reiterated a Buy rating on the stock with a $24.00 price target.