In a report released today, Tomer Zilberman from Bank of America Securities reiterated a Buy rating on Cellebrite DI, with a price target of $25.00.
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Tomer Zilberman has given his Buy rating due to a combination of factors that highlight Cellebrite DI’s potential for growth and recovery. The company has shown significant progress in expanding its business within the Federal segment, alleviating previous concerns about Federal demand weakness. The alignment with the current US administration’s priorities and the anticipated flow of budget from OBBB, along with FedRAMP certification, positions Cellebrite well for growth re-acceleration in the coming year.
Zilberman also notes that Cellebrite’s recent revenue growth outperformed expectations, with a notable recovery in Federal demand. Management’s outlook for continued strength in the typically weak fourth quarter further underscores the positive shift in demand. Additionally, the company’s Cloud and SaaS-based solutions are experiencing robust growth, and there are plans to reduce Sun Corp’s significant stock ownership, which is viewed positively. These factors collectively support the Buy rating, with an increased price objective reflecting the company’s favorable growth prospects.
Zilberman covers the Technology sector, focusing on stocks such as Okta, Gen Digital, and Cellebrite DI. According to TipRanks, Zilberman has an average return of 14.6% and a 66.67% success rate on recommended stocks.
In another report released today, Needham also maintained a Buy rating on the stock with a $24.00 price target.