RDE (GIFT – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Allen Klee from Maxim Group maintained a Buy rating on the stock and has a $4.00 price target.
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Allen Klee has given his Buy rating due to a combination of factors including RDE’s strategic acquisition of TakeOut7, which enhances its service offerings and opens up significant cross-selling opportunities with Restaurant.com. The acquisition is expected to positively impact financial performance as TakeOut7 operates near breakeven and has a strong track record of connecting restaurants with millions of customers.
Additionally, Klee appreciates the potential for gross margin expansion as RDE optimizes its operations and increases the revenue contribution from Restaurant.com. The company’s solid financial position, with sufficient cash and access to additional capital, supports its growth initiatives. Furthermore, the stock’s attractive valuation based on future revenue projections and a detailed discounted cash flow analysis underpins the Buy rating.
GIFT’s price has also changed moderately for the past six months – from $1.400 to $1.590, which is a 13.57% increase.