Digimarc (DMRC – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Joshua Reilly from Needham maintained a Buy rating on the stock and has a $30.00 price target.
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Joshua Reilly has given his Buy rating due to a combination of factors including Digimarc’s solid performance in the first quarter of 2025. The company demonstrated progress in achieving its annual recurring revenue (ARR) growth and cost reduction targets, with an 11% adjusted ARR growth that surpassed internal expectations, excluding the impact of lost revenue from Walmart.
Additionally, Digimarc is effectively managing its expenses, with a projected quarter-over-quarter decline in non-GAAP operating expenses by $7 million to approximately $9 million for the second quarter of 2025. The company is on track to meet its non-GAAP operating income goals by the end of the year. With a more focused strategy, the key challenge is whether Digimarc can secure new deals in its primary areas of focus. Success in retail loss prevention and Digimarc Validate in the upcoming quarters could positively influence investor perception of the company’s strategic pivot.
Reilly covers the Technology sector, focusing on stocks such as AudioEye, Asure, and Digimarc. According to TipRanks, Reilly has an average return of 2.6% and a 44.55% success rate on recommended stocks.