In a report released today, James Faucette from Morgan Stanley upgraded Global-e Online (GLBE – Research Report) to a Buy, with a price target of $46.00.
James Faucette has given his Buy rating due to a combination of factors that highlight the potential for Global-e Online’s stock to appreciate. The company is positioned well with a high-quality growth trajectory and is trading at an attractive valuation multiple. The recent Investor Day has helped to de-risk estimates and market sentiment, providing a clearer understanding of how current trade policies could benefit Global-e. Additionally, the company’s guidance appears conservative, and expectations around Shopify’s Managed Markets and multi-local strategies are now more appropriately set.
Faucette notes that Global-e is trading in line with its peers on future EBITDA, despite having a faster growth rate. The company’s revenue and EBITDA are expected to grow significantly, with a compound annual growth rate projected to outpace that of its high-growth fintech and vertical software peers. Furthermore, the market’s concerns about potential slowing U.S. consumer spending seem overstated, as Global-e’s exposure is limited and skewed toward high-end consumers. Overall, the achievable growth targets and the potential benefits from increased tariffs contribute to a positive outlook for the stock.
In another report released on March 12, Wells Fargo also maintained a Buy rating on the stock with a $54.00 price target.