RE:Analyst lowered to "neutral" on FORASour grapes? This analyst might be embarrassed by having missed the call so I checked his past reports. After his August 2023 report, he still didn't like FORA in November but finally upgraded it in March when he raised the target to $9.00. Following a strong outlook for Q2 after a solid Q1, he again raised his target to $12.00 in May. Below is what he wrote two months ago so IMHO, you might want to apply a grain of salt in this case. GLTA
August 9, 2024 Earnings Update
VERTICALSCOPE HOLDINGS, INC.
Q2 Results Confirm Growth Strategy
Our Conclusion
VerticalScope reported Q2 results that came in 3% below FactSet estimates
for revenue while adjusted EBITDA was 6% above. Top line growth was
driven by strong programmatic revenue growth (up 35% Y/Y) and a record
number of monthly active users (MAU) at 122MM. Improving trends within
the e-commerce segment were also encouraging. Partially offsetting these
points of strength were three direct advertising deals that slipped into Q3.
Strong organic programmatic growth, an increasingly flexible balance sheet
and a catalyst-rich backdrop give us confidence in the company’s ability to
execute on its growth priorities and confirm our Outperformer rating. We
expect the valuation gap between VerticalScope and its peers to narrow.
Our C$12 price target is based on an EV/2024E EBITDA (incl. capex)
multiple of 8x (prior 9x) and 11x our 2024 free cash flow forecast as a
secondary valuation method. Our enterprise value includes net debt of
~$33.1MM (including purchase obligations) and applies a 1.37 USD/CAD
rate. This valuation is in line with peers that trade at ~8x and ~11x,
respectively, due to its higher growth and margins but smaller scale.