Bryan Bergin, an analyst from TD Cowen, reiterated the Buy rating on Grid Dynamics Holdings. The associated price target remains the same with $12.00.
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Bryan Bergin has given his Buy rating due to a combination of factors that indicate a positive outlook for Grid Dynamics Holdings. The company has shown strong momentum in its business operations, with significant additions to its billable engineering base and a strategic plan to improve its margins by over 300 basis points in the near term. Additionally, Grid Dynamics has announced a $50 million share repurchase plan, which is approximately 8% of its market capitalization, signaling confidence in the company’s value while its shares are undervalued.
Bergin acknowledges a slight setback in the fourth quarter revenue guidance, which is 3% below expectations, but notes that the adjusted EBITDA is still 6% above projections. Despite this, the company is well-positioned for growth recovery, with expectations of over 10% organic growth in FY26, supported by factors such as multi-quarter program renewals and longer-duration contracts. The shift in client demand towards growth-oriented engagements and the company’s strong digital engineering capabilities are expected to drive significant benefits as enterprise adoption of advanced technologies increases.
In another report released on October 24, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $9.00 price target.