Asure’s Promising Growth Prospects: Buy Rating Backed by Strong Performance and Emerging Opportunities

Analyst Joshua Reilly from Needham maintained a Buy rating on Asure (ASUR – Research Report) and keeping the price target at $20.00.

Joshua Reilly has given his Buy rating due to a combination of factors including Asure’s strong first-quarter performance where revenue reached the upper end of their guidance range. This achievement was notable despite facing a significant challenge from reduced HR Compliance revenue, which was impacted by churn related to bundled sales with ERTC in 2023. Looking ahead, Reilly anticipates that the churn in HR Compliance will decrease, providing an opportunity for revenue growth in the latter half of 2025.
Additionally, Asure is expected to benefit from new opportunities in Enterprise Payroll Tax, 401(K), Broker of Record, and other emerging products, which are building a promising pipeline. The company’s strategy of employing product specialist sales is seen as effective as Asure expands its offerings beyond traditional HCM products to a wider range of solutions for small and medium-sized businesses. Reilly maintains that Asure’s shares are undervalued, and with the company’s improving revenue quality and growth prospects, there is potential for accelerated growth into 2026.

In another report released yesterday, Lake Street also maintained a Buy rating on the stock with a $13.00 price target.

Based on the recent corporate insider activity of 26 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 ASUR in relation to earlier this year.