Cantaloupe’s Strategic Shift and Operational Efficiency Drive Buy Rating Despite Mixed Results

William Blair analyst Christopher Kennedy has maintained their bullish stance on CTLP stock, giving a Buy rating on April 25.

Christopher Kennedy has given his Buy rating due to a combination of factors that highlight Cantaloupe’s evolving business model and financial outlook. Despite a recent decline in share price following mixed quarterly results, the company’s adjusted EBITDA exceeded expectations, indicating strong operational efficiency. The slowdown in subscription and transaction fee revenue was attributed to temporary factors such as poor weather, with volume normalizing in recent months.
Moreover, Cantaloupe’s strategic shift from traditional vending machines to higher-revenue micro markets and smart stores is expected to drive significant growth. The company’s volume per device has shown impressive growth, suggesting a successful transition to higher-ticket items. While the subscription revenue growth has lagged behind long-term targets, transaction revenue and gross margins have exceeded expectations, supporting a positive outlook. Applying a valuation multiple to the company’s EBITDA target suggests a potential share price increase, reinforcing the Buy rating.

In another report released on April 25, Northland Securities also maintained a Buy rating on the stock with a $12.00 price target.