In a report released yesterday, Koji Ikeda from Bank of America Securities reiterated a Buy rating on Amplitude (AMPL – Research Report), with a price target of $16.00.
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Koji Ikeda has given his Buy rating due to a combination of factors that highlight Amplitude’s improving financial performance and strategic direction. The company reported strong fourth-quarter results for 2024, with revenue, annual recurring revenue (ARR), and non-GAAP operating income exceeding expectations. The guidance for 2025 suggests further revenue growth, indicating a positive trajectory for the business. Although the non-GAAP operating income guidance is slightly below expectations, the focus on product and growth is a positive sign for future prospects.
Additionally, Amplitude’s valuation presents an attractive risk/reward opportunity with a discount compared to its peers. The company achieved its highest net-new ARR in nine quarters, signaling its critical role in enhancing digital user engagement. As Amplitude starts to concentrate more on strategic enterprise accounts, this shift could lead to greater customer lifetime value, despite some near-term risks associated with sales team changes. The increased price objective to $16 reflects confidence in Amplitude’s improved execution and growth potential.
Ikeda covers the Technology sector, focusing on stocks such as Datadog, nCino, and PagerDuty. According to TipRanks, Ikeda has an average return of 16.9% and a 61.10% success rate on recommended stocks.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $17.00 price target.