Cantaloupe (CTLP – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Gary Prestopino from Barrington maintained a Buy rating on the stock and has a $14.00 price target.
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Gary Prestopino has given his Buy rating due to a combination of factors that highlight Cantaloupe’s strong financial performance and strategic growth. The company’s recent financial results showed a significant improvement in key metrics, with a 12.8% year-over-year increase in revenue for Q2/25, reaching $73.7 million, and a 25.7% rise in adjusted EBITDA, surpassing expectations. These results indicate an effective operational leverage and a promising growth trajectory within the digital payments and software services sector.
Moreover, Cantaloupe demonstrated robust growth in recurring revenue, particularly in transaction and subscription revenues, which grew by 17% and 14% respectively. The company also improved its gross margins across various segments, reflecting enhanced profitability. The strategic expansion in new product offerings such as Smart Stores and Micro Markets further underscores its capability to capture new market opportunities. These factors collectively justify the raised price target and support the Buy rating for Cantaloupe’s stock.
In another report released on February 7, Craig-Hallum also maintained a Buy rating on the stock with a $12.00 price target.