Needham analyst Joshua Reilly maintained a Buy rating on AudioEye (AEYE – Research Report) today and set a price target of $25.00.
Joshua Reilly has given his Buy rating due to a combination of factors that highlight AudioEye’s improved financial flexibility and growth potential. The recent refinancing of the company’s debt has resulted in a significant reduction in interest rates, from 13.25% to a floating rate of 7.75%, with the possibility of further reduction if the SOFR rate decreases. This financial maneuver not only lowers the company’s interest expenses but also provides additional capital, enabling AudioEye to expand its sales efforts in Europe and pursue strategic acquisitions.
Furthermore, the refinancing includes a term loan of up to $5 million specifically for acquisitions, alongside a $3 million revolver, which collectively enhances the company’s ability to invest in growth opportunities. These financial improvements are expected to positively impact AudioEye’s market performance, supporting the Buy rating. The maturity of these financial instruments in 2030 also provides a long-term horizon for the company to leverage these resources effectively.
According to TipRanks, Reilly is a 3-star analyst with an average return of 2.4% and a 42.99% success rate. Reilly covers the Technology sector, focusing on stocks such as AudioEye, Verint Systems, and Jamf Holding.