Analyst Michael Diana of Maxim Group maintained a Buy rating on Heritage Global (HGBL – Research Report), with a price target of $4.50.
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Michael Diana has given his Buy rating due to a combination of factors including Heritage Global’s strong future prospects and its current undervaluation compared to peers. Despite a weak quarter caused by delays in large auctions, the company has a robust pipeline of auctions and charged-off loans, suggesting a period of sustained growth over the next two years. Management’s optimism is supported by macroeconomic tailwinds, which are expected to drive multi-year growth.
Additionally, Diana maintains the 2025 EPS estimate and a price target of $4.50, which implies a significant upside from the current trading price. The company’s financial position is strong, with no debt and positive cash flow, reducing the need for near-term equity raises. Furthermore, Heritage Global’s shares are trading at a lower P/E multiple compared to its closest competitor, Liquidity Services, which Diana believes is unjustified given Heritage Global’s profitability track record.
In another report released on March 14, Lake Street also maintained a Buy rating on the stock with a $4.00 price target.