In a report released yesterday, David Hynes from Canaccord Genuity maintained a Buy rating on Kaltura (KLTR – Research Report), with a price target of $4.00.
David Hynes has given his Buy rating due to a combination of factors related to Kaltura’s recent performance and future prospects. The key positive aspect highlighted by Hynes is the improvement in gross retention for the third consecutive quarter, which reached its highest level in the past five quarters. This trend suggests that the challenges associated with post-COVID video usage declines and budget constraints are largely being overcome. Despite some concerns over deal slippage in the first quarter, management’s confidence in a strong pipeline for the remainder of the year supports the expectation of improved performance.
Furthermore, Hynes points to the guidance provided by Kaltura, which suggests flat year-over-year revenue growth in the context of nearly 100% net revenue retention, albeit with some sequential decline in the first quarter. The prospect of steadily improving bookings is seen as a reasonable expectation to achieve. With Kaltura having posted its third consecutive quarter of EBITDA profitability and a slight revenue growth, Hynes believes that the current enterprise value to revenue multiple is excessively punitive, suggesting significant room for the stock’s revaluation upwards if the company returns to sustainably profitable growth.
Hynes covers the Technology sector, focusing on stocks such as HubSpot, Jamf Holding, and Zeta Global Holdings Corp. According to TipRanks, Hynes has an average return of 8.3% and a 52.43% success rate on recommended stocks.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $3.00 price target.
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Kaltura (KLTR) Company Description:
Kaltura Inc provides live and on-demand video SaaS solutions to thousands of organizations around the world, engaging hundreds of millions of viewers at home, at work, and at school. It also offers specialized industry solutions, including Learning Management System Video, Lecture Capture, and Virtual Classroom for educational institutions, as well as a TV Solution for media and telecom companies.
