Barrington analyst Michael Petusky maintained a Buy rating on VerifyMe today and set a price target of $1.00.
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Michael Petusky has given his Buy rating due to a combination of factors that reflect both the strengths and challenges faced by VerifyMe. Despite a decline in revenue compared to the previous year, the company’s Q3 results exceeded expectations in terms of adjusted EPS and adjusted EBITDA, indicating operational efficiency and cost management. The gross margin performance was notably strong, surpassing estimates, which suggests improved rate structures and operational efficiencies.
However, the loss of the FedEx proactive business introduces significant uncertainty, as this accounted for a substantial portion of the company’s revenue. Nevertheless, VerifyMe has secured a new agreement with another large parcel carrier, which offers potential for future growth. The company is optimistic about retaining a significant portion of its business through this transition and anticipates sequential top-line growth in 2026. Despite the challenges, the company’s cash position remains solid, and management is actively exploring external growth opportunities, which supports the Buy rating.