In a report released today, Joshua Reilly from Needham maintained a Buy rating on AudioEye, with a price target of $25.00.
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Joshua Reilly has given his Buy rating due to a combination of factors that highlight AudioEye’s strong market position and future growth potential. The company’s Q3 results were solid, with revenue and EBITDA aligning with expectations, and the guidance for Q4 remains stable. Despite some churn from previous acquisitions affecting net new ARR, this is expected to decline moving forward, indicating improved stability.
Additionally, AudioEye is experiencing robust new business activity, particularly with key partners such as CivicPlus and FinalSite, and is benefiting from regulatory-driven opportunities like the EAA and Title II of the ADA. These factors are expected to drive incremental bookings, with the Title II mandate anticipated to further boost bookings into 2026. Furthermore, the company is optimistic about expanding its EBITDA margins to 30-40% annually over the next three years, supported by potential revenue growth in 2026.
Reilly covers the Technology sector, focusing on stocks such as Jamf Holding, Vertex, and Digimarc. According to TipRanks, Reilly has an average return of 2.2% and a 44.49% success rate on recommended stocks.