In a report released yesterday, Allen Klee from Maxim Group reiterated a Buy rating on RDE, with a price target of $4.00.
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Allen Klee has given his Buy rating due to a combination of factors that highlight RDE’s potential for growth and operational improvements. The company reported a 23% year-over-year increase in gross billings, which is a strong indicator of business growth despite a revenue miss due to the mix of gross versus net revenue. This growth, coupled with a narrower-than-expected adjusted EBITDA loss, underscores RDE’s efforts to enhance margins through improved processing fees, headcount optimization, and the use of AI for operational efficiency.
Furthermore, the company’s platforms, CardCash and Restaurant.com, are expanding their offerings and improving their monetization strategies. CardCash provides discounted gift cards from over 1,100 retailers, while Restaurant.com is increasing its subscription offerings and monetization of its extensive restaurant partnerships. With sufficient capital resources and a strategic focus on gross margin expansion, RDE is well-positioned for future growth. These factors, combined with a favorable valuation at an EV/2026E revenue multiple of 0.3x, support the Buy rating with a price target of $4.00.
GIFT’s price has also changed moderately for the past six months – from $1.450 to $1.060, which is a -26.90% drop .