Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Buy rating on VerticalScope Holdings, Inc. (FORA – Research Report), retaining the price target of C$10.00.
Aravinda Galappatthige has given his Buy rating due to a combination of factors that highlight VerticalScope Holdings, Inc.’s potential for growth and value. The company is strategically positioned to enhance its business by focusing on increasing monthly active users (MAUs) post-search engine updates and improving user engagement on its Fora platform. Additionally, VerticalScope is exploring data monetization opportunities through partnerships, which could provide significant revenue upside.
Furthermore, the company’s direct advertising segment has shown robust growth, indicating resilience in its revenue streams. VerticalScope is also actively pursuing mergers and acquisitions to expand its scale, supported by a strengthening balance sheet. The valuation of the company appears attractive, with a high free cash flow yield and a strategy to reduce debt, which could lead to a strong re-rating of the stock if the business outlook stabilizes.
Galappatthige covers the Communication Services sector, focusing on stocks such as Telus, Cineplex, and BCE. According to TipRanks, Galappatthige has an average return of -1.9% and a 45.01% success rate on recommended stocks.
In another report released on April 9, Raymond James also maintained a Buy rating on the stock with a C$9.00 price target.