VerticalScope Holdings: Buy Rating Amidst Growth Potential and Strategic Resilience

Aravinda Galappatthige, an analyst from Canaccord Genuity, maintained the Buy rating on VerticalScope Holdings (FORA – Research Report). The associated price target remains the same with C$10.00.

Aravinda Galappatthige has given his Buy rating due to a combination of factors that suggest potential for future growth despite recent challenges. VerticalScope Holdings has experienced a decline in key metrics, such as Monthly Active Users and digital advertising revenue, primarily due to changes in Google’s search algorithm and weaknesses in video advertising. However, the company’s Average Revenue Per User (ARPU) remained stable, indicating resilience in its revenue model.
Moreover, VerticalScope’s balance sheet reflects a conservative leverage ratio, which positions it well for potential mergers and acquisitions, as well as continued share buybacks. The management’s openness to strategic acquisitions and capital returns to shareholders demonstrates confidence in the company’s long-term growth prospects. Additionally, the valuation based on a 6x EV/EBITDA multiple for 2026 suggests an attractive entry point for investors, supporting the Buy recommendation.

In another report released on April 29, RBC Capital also maintained a Buy rating on the stock with a C$9.00 price target.