Analyst Allen Klee of Maxim Group reiterated a Buy rating on Research Solutions, retaining the price target of $6.00.
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Allen Klee has given his Buy rating due to a combination of factors that highlight the strong potential of Research Solutions. The company reported a 3% year-over-year increase in revenue for F4Q25, with a notable 15% rise in adjusted EBITDA, aligning with expectations. A key driver of this growth is the Platforms segment, which saw a 21% increase in revenue and now constitutes 42% of total revenue and 72% of gross profits. This segment’s high margins and significant annual recurring revenue growth underscore its importance to the company’s long-term value creation.
Additionally, Research Solutions is strategically expanding its offerings, including new AI initiatives and the acquisition of Scite, which are expected to bolster growth. Despite challenges in the Transactions segment, the company’s strong cash position, lack of debt, and positive free cash flow projections provide a solid foundation for organic growth. The stock’s current valuation, trading at a lower EV/revenue multiple compared to peers, along with a 12-month price target of $6.00, further supports the Buy rating.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $5.00 price target.