Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Buy rating on VerticalScope Holdings, Inc. (FORA – Research Report), retaining the price target of C$17.00.
Aravinda Galappatthige has given his Buy rating due to a combination of factors that highlight VerticalScope Holdings, Inc.’s strong financial performance and growth potential. The company’s recent quarterly results exceeded expectations, particularly in terms of adjusted EBITDA, which saw a significant year-over-year increase. This was driven by robust growth in digital advertising revenue, supported by a rise in monthly active users and average revenue per user.
Additionally, VerticalScope’s free cash flow was better than anticipated, reflecting its effective cost management and operational efficiency. The company’s balance sheet is also in a favorable position, with a lower-than-expected net debt to EBITDA ratio, suggesting financial stability and the capacity for strategic acquisitions. These positive financial indicators, combined with the management’s openness to growth through mergers and acquisitions, underpin the Buy rating.
In another report released yesterday, TD Securities also maintained a Buy rating on the stock with a C$18.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FORA in relation to earlier this year.
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