AvidXchange Holdings: Buy Rating Amid Takeover Interest and Promising Growth Potential

David Koning, an analyst from Robert W. Baird, maintained the Buy rating on AvidXchange Holdings (AVDX – Research Report). The associated price target remains the same with $12.00.

David Koning has given his Buy rating due to a combination of factors that highlight AvidXchange Holdings as a promising investment. The company is currently experiencing takeover interest, which is seen as a logical development following a recent decline in stock price. This interest is supported by AvidXchange’s solid growth, albeit slower than anticipated, strong margins, and a robust balance sheet.
Furthermore, Koning considers the valuation of AvidXchange to be reasonable, estimating a take-out price around $12 to $13 per share. This includes considerations such as the company’s net operating loss value and cash reserves. Despite the current market’s tendency to discount valuations, the B2B payments theme remains attractive, and the company’s potential for growth in 2026, driven by new products and macroeconomic improvements, reinforces the Buy rating.

According to TipRanks, Koning is a 5-star analyst with an average return of 14.5% and a 55.80% success rate. Koning covers the Technology sector, focusing on stocks such as WEX, IBEX, and AvidXchange Holdings.

In another report released on February 28, Susquehanna also maintained a Buy rating on the stock with a $13.00 price target.