Gorilla Technology Group (GRRR), a player in AI-driven IIOT solutions, is projecting strong revenue growth for 2024 and 2025. The company recently announced the launch of the Intelligent Network Director platform, which aims to capitalize on the substantial $40 billion SD-WAN market. Gorilla is further buoyed by major contracts and strategic partnerships in Asia, MENA, and Latin America. The stock is relatively undervalued, considering its robust financial prospects, making it a potentially appealing option for value-oriented investors interested in technology stocks.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Gorilla Technology Advances New Platform
Gorilla Technology provides AI-powered IIOT solutions focusing on security convergence, network defense, video, and big data analytics. The company offers its services to the private and public sectors, enabling them to automate operations and enhance decision-making through actionable insights derived from analog and digital signals. Its solutions are widely used in smart cities, ports, manufacturing sites, buildings, and retail spaces.
The company recently launched the Gorilla Intelligent Network Director, receiving a robust market response. The platform, set for full release in mid-2025, integrates high-level security and real-time intelligence into SD-WAN solutions, meeting the needs of businesses confronting changing security and connectivity needs. The product is scalable across varying environments, such as on-premise and cloud-based networks. The platform is expected to help Gorilla gain a considerable share of the $40 billion SD-WAN market, with revenue from the early-stage sales and market adoption of the Intelligent Network Director expected to significantly boost the company’s 2025 projections.
Additionally, Gorilla has entered into a partnership with Edgecore Networks. As part of this collaboration, Gorilla is launching its Self-Branded Exclusive AI GPUs, powered by Intel’s (INTC) Gaudi architecture, through Edgecore’s hardware platforms. These GPUs are designed to provide superior computing power to regions facing challenges in meeting their AI and machine learning requirements. This joint venture will enable Gorilla to provide high-performance, cost-effective solutions to meet the increasing demands of global AI-powered smart cities and enterprises.
Gorilla Still Looking to Land a Big Fish
The company has realized significant growth in the first half of 2024, with a revenue increase of 222% and a gross profit growth of 456%. The company projects the financial momentum to continue, with the revenues forecasted to reach $72 million in 2024. The EBITDA margin and net income are also expected to exceed 20% and $10 million, respectively.
Going into 2025, Gorilla’s backlog, represented by signed contracts, stands at a robust $93 million. The company anticipates revenue to top $90 million in 2025 and a net income of over $15 million. The EBITDA margins are expected to be between 20% and 25%, further reinforcing the company’s potential for long-term profitability.
GRRR’s management has indicated that these projections do not include the impact of potential large-scale contracts. The company is actively pursuing additional projects in AI-powered analytics, cybersecurity, and smart cities. Several of these contracts, which could be worth billions, are in their final negotiation stages.
GRRR Stock Shows Momentum and Value
The shares have been on a strong upward trajectory, climbing 155% in the past three months. They trade near the middle of their 52-week price range of $2.09 – $13.00 and demonstrate ongoing positive price momentum as they trade above all major moving averages. The P/S ratio of 0.69x reflects a relative discount to the Information Technology sector average of 3.35x
The company is thinly followed by Wall Street, but those who do have had a bullish outlook on GRRR stock. For instance, Northland analyst Michael Latimore, a five-star analyst according to Tipranks’ ratings, recently raised the price target on the shares to $13 and kept an Outperform rating, noting the company is in the running for a substantial contract, with the firm establishing FY26 revenue and EBITDA estimates of $122.6 million and $24.1 million, respectively.
Based on two analysts’ recent recommendations, Gorilla Technology Group is rated a Moderate Buy overall. The average price target for GRRR stock is $14.50, representing a potential upside of 83.31% from current levels.
GRRR in Review
Gorilla Technology Group forecasts substantial revenue growth in the next two years, capitalizing on the $40 billion SD-WAN market and strategic partnerships that position it favorably for further expansion. Given its promising financial outlook, the company’s stock currently appears undervalued. This, coupled with the robust market response to its new offerings and the potential for significant growth, makes GRRR a potentially compelling consideration for those investing in technology stocks.
