Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Buy rating on VerticalScope Holdings, Inc. (FORA – Research Report), reducing the price target to C$10.00.
Aravinda Galappatthige has given his Buy rating due to a combination of factors influencing VerticalScope Holdings, Inc. Despite the company facing challenges such as a decline in video advertising trends and a dip in monthly active users (MAUs) following Google’s algorithm changes, the analyst maintains a positive outlook. The company’s guidance for adjusted EBITDA and free cash flow has been revised downwards, but the Buy rating is upheld due to the potential for recovery and strategic acquisitions.
VerticalScope has been active in mergers and acquisitions, with a significant increase in consolidation activity, which could bolster its market position. Although revenue growth expectations have been adjusted downward, the company remains committed to maintaining leverage within a manageable range. The target price has been reduced to reflect current market conditions, yet the overall strategic direction and potential for future growth support the Buy recommendation.
In another report released yesterday, TD Securities also maintained a Buy rating on the stock with a C$15.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FORA in relation to earlier this year.