Jefferies analyst James Wheatcroft has maintained their bullish stance on EVOK stock, giving a Buy rating on July 22.
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James Wheatcroft has given his Buy rating due to a combination of factors, including strong revenue growth and improved financial metrics. The company has shown a notable increase in momentum during the second quarter, with a 5% revenue growth in constant currency terms, and a significant 7% growth in the online segment. This positive trend is further supported by a return to growth in the retail sector, contributing to an overall 4% revenue growth in the first half of the fiscal year.
Additionally, 888 Holdings has maintained its guidance for annual revenue growth between 5-9% and an EBITDA margin of 20%, which suggests a potential EBITDA improvement of approximately 3% over current expectations. The valuation appears attractive with an EV/EBITDA multiple of 5.8x, indicating potential for long-term equity upside as leverage is expected to decrease significantly by the end of FY27. The company’s strategic cost savings and leverage reduction efforts are on track, enhancing its financial stability and growth prospects.
In another report released on July 22, Berenberg Bank also maintained a Buy rating on the stock with a p95.00 price target.
EVOK’s price has also changed slightly for the past six months – from p73.900 to p69.500, which is a -5.95% drop .