J.P. Morgan analyst Reginald Smith maintained a Hold rating on Riskified today and set a price target of $6.00.
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Reginald Smith has given his Hold rating due to a combination of factors influencing Riskified’s current and future performance. The company has shown promising growth in revenue and gross profit, driven by successful upselling and improvements in their operational models. These enhancements have contributed to a better-than-expected adjusted EBITDA, prompting management to raise their guidance for the fiscal year 2025. Despite these positive developments, Smith remains cautious due to uncertain macroeconomic trends that could impact the company’s future performance.
Furthermore, while Riskified’s strategic shift towards autonomous model training has yielded impressive results, outperforming previous manual models, the broader market conditions remain a concern. The company’s valuation, compared to its peers in the small-cap software and technology sector, suggests potential for share price appreciation. However, given the current economic uncertainties, Smith prefers to maintain a neutral stance, acknowledging the potential for growth but opting to stay on the sidelines until clearer market signals emerge.
According to TipRanks, Smith is a 4-star analyst with an average return of 13.2% and a 53.98% success rate. Smith covers the Financial sector, focusing on stocks such as IREN, SoFi, and Riot Platforms.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5.50 price target.