Analyst Koji Ikeda of Bank of America Securities reiterated a Buy rating on Global-e Online (GLBE – Research Report), retaining the price target of $48.00.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Koji Ikeda has given his Buy rating due to a combination of factors that highlight Global-e Online’s potential for long-term growth. Despite a less than perfect quarter, Global-e’s first-quarter results exceeded expectations in terms of gross merchandise volume, revenue, and adjusted EBITDA. However, guidance for the second quarter and the reaffirmed 2025 outlook fell short of market expectations, primarily due to macroeconomic uncertainties and changes in the Shopify partnership.
Ikeda believes that the recent sell-off presents a compelling buying opportunity, as the company’s long-term prospects remain strong in the $175 billion total addressable market. The renewed partnership with Shopify, although losing some exclusivity, still positions Global-e as a preferred partner, which management suggests will not significantly impact growth. Additionally, while the reiterated guidance might seem risky amid global commerce uncertainties, the potential for greater GMV scale in 2025 provides some reassurance. The $48 price objective is supported by a valuation based on a 31x EV/CY26E free cash flow, reflecting confidence in Global-e’s ability to grow GMV by over 20% in the medium term.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $64.00 price target.