RDE’s Strategic Profitability Shift and Strong Financial Position Justify Buy Rating

Maxim Group analyst Allen Klee maintained a Buy rating on RDE (GIFT – Research Report) yesterday and set a price target of $4.00.

Allen Klee has given his Buy rating due to a combination of factors that highlight the potential growth and financial stability of RDE. The company’s focus on expanding its gross margin, despite a slight revenue shortfall, demonstrates a strategic shift towards profitability. This is evidenced by the improvement in gross margin from 15.1% to 16.1% year-over-year, driven by optimization efforts and pricing adjustments in their CardCash platform and the inclusion of the higher-margin Restaurant.com.
Additionally, Klee notes the company’s sufficient financial resources, with $2.1M in cash, $6.3M in debt, and access to a $30M ATM, which positions RDE well to fund its operations and growth initiatives. The valuation of GIFT at an EV/2026E revenue multiple of 0.5x, along with a 12-month price target of $4.00 based on a 10-year discounted cash flow model, further supports the Buy rating. These elements combined suggest a favorable outlook for RDE’s future performance.

Klee covers the Technology sector, focusing on stocks such as Innodata, Castellum, and Intelligent Protection Management. According to TipRanks, Klee has an average return of -18.4% and a 26.17% success rate on recommended stocks.