Analyst Terry Tillman of Truist Financial maintained a Buy rating on Riskified, retaining the price target of $8.00.
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Terry Tillman has given his Buy rating due to a combination of factors that highlight Riskified’s strong financial performance and strategic positioning. The company reported solid second-quarter results with revenues and EBITDA exceeding expectations, demonstrating resilience in consumer spending and a robust sales pipeline. Additionally, Riskified achieved a 100% renewal rate for large contracts and continued to innovate with new product launches, contributing to its vertical diversification and significant international growth.
Moreover, the company’s financial health is underscored by its substantial cash reserves of $339 million and its debt-free status, allowing for continued shareholder value through stock repurchases. The company’s strategic initiatives in expanding key verticals like Money Transfer and Payments, which saw a remarkable 90% year-over-year growth, further support the Buy rating. Despite some challenges in gross margin performance, Riskified’s long-term growth prospects and deep value situation present a compelling investment opportunity.
In another report released today, D.A. Davidson also maintained a Buy rating on the stock with a $6.00 price target.