In a report released yesterday, Bryan Bergin from TD Cowen maintained a Hold rating on Grid Dynamics Holdings (GDYN – Research Report), with a price target of $11.00.
Bryan Bergin’s hold rating for Grid Dynamics Holdings is influenced by a number of considerations. Grid Dynamics appears to be in a stabilizing phase, with a somewhat positive third-quarter performance that exceeded market expectations and a fourth-quarter outlook that is also slightly better than anticipated. Although there’s an overall optimistic tone, some client accounts remain more challenged, and the current uncertain environment adds to the difficulty of claiming complete recovery.
Grid Dynamics’ existing clientele, which traditionally accounts for approximately 85% of revenue, is showing signs of health, which is essential for a return to a normal growth trajectory. However, the company still faces challenges, particularly with its higher client concentration, which poses a risk. Despite some improvements, caution is still needed as the company navigates the sector’s uncertainties. Therefore, Bergin takes a somewhat cautious stance on growth and margins for CY24 until more evidence of large client momentum and increased demand for discretionary Services materializes. This explains the hold rating and the affirmed price target of $11.
Bergin covers the Technology sector, focusing on stocks such as Accenture, Epam Systems, and Exlservice Holdings. According to TipRanks, Bergin has an average return of 6.9% and a 52.47% success rate on recommended stocks.
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Grid Dynamics Holdings (GDYN) Company Description:
ChaSerg Technology Acquisition Corp. is a blank check company, which engages in the capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with one or more businesses. The company was founded on May 21, 2018 and is headquartered in La Jolla, CA.
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