Needham analyst Joshua Reilly maintained a Buy rating on AudioEye (AEYE – Research Report) today and set a price target of $25.00.
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Joshua Reilly has given his Buy rating due to a combination of factors including AudioEye’s strong first-quarter performance and promising growth prospects. The company reported a 15.9% increase in annual recurring revenue (ARR), which is a positive indicator of its financial health and future potential. Furthermore, AudioEye is enhancing its operating leverage, aiming for $1.00 in annualized free cash flow by the end of the fourth quarter of 2025, with expectations for further leverage improvements in 2026.
Key growth drivers for AudioEye include strategic partnerships with FinalSite and CivicPlus, as well as momentum in direct sales. These factors are expected to contribute to a significant increase in ARR growth and net new ARR in the latter half of 2025. Despite some slower growth areas, such as auto dealer CMS partnerships affected by tariffs and challenges from the ADA Site Compliance acquisition, the overall outlook remains positive. The lack of changes in accessibility legislation in the US and Europe provides a favorable backdrop for sustained ARR growth in the high teens to low 20% range over the next several years.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $25.00 price target.