Analyst Joshua Reilly of Needham reiterated a Buy rating on Crexendo, retaining the price target of $9.00.
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Joshua Reilly has given his Buy rating due to a combination of factors that highlight Crexendo’s strong performance and growth potential. The company reported impressive third-quarter results, showcasing a 28% growth in their software solutions segment, which includes the addition of six new licensees. This growth is further supported by a significant reduction in the launch time for new clients, thanks to their use of Oracle Cloud Infrastructure, allowing Crexendo to realize revenue more quickly.
Moreover, discussions at Crexendo’s recent user group meeting indicate a positive trend, with an increasing number of licensees expected to transition to Crexendo’s hosting services. On the retail front, despite some challenges, the company is showing a near 10% growth rate, with expectations for further acceleration as certain headwinds diminish by 2026. Overall, Reilly’s optimism is rooted in Crexendo’s effective sales execution and the promising trajectory of their licensee growth.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $8.00 price target.