Craig-Hallum bullish on Nextdoor, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Nextdoor (KIND) with a Buy rating and $4 price target The firm believes ad platform investments will continue to deliver double-digit growth, and Nextdoor initiatives deployed mid-year should drive improved consumer frequency and duration. If these initiatives can successfully deliver long-term growth scaling to 20%-30%, Craig-Hallum sees a path to $500M revenue and $100M in 2027 EBITDA. This would drive a path to a $7 stock at just a 5-turns revenue multiple, a discount to social platform peers. The firm sees a re-rating evolving from lead-gen to social platform amid the pattern of growth acceleration.