Craig-Hallum bullish on Gloo, initiates with a Buy

As previously reported, Craig-Hallum analyst Jason Kreyer initiated coverage of Gloo (GLOO) with a Buy rating and $10 price target The firm sees the company as a key technology leader for the faith and flourishing ecosystem, executing on a substantial TAM with limited competition. Craig-Hallum further argues the company is well differentiated through a combination of organic and inorganic capabilities, namely offerings such as GlooAI, a values-aligned LLM solution, and Gloo360, its holistic technology suite. The firm believes that success with both CFLs and NCPs is driving a flywheel effect that should deliver strong revenue growth, while reaching profitability serves as a catalyst for shares in the coming quarters. While valuation reflects a discount to SaaS peers, Craig-Hallum sees Gloo shares re-rating on execution and establishing a track record of organic growth.