Needham analyst Mayank Tandon reiterated a Buy rating on Grid Dynamics Holdings (GDYN – Research Report) today and set a price target of $14.00.
Mayank Tandon has given his Buy rating for the Grid Dynamics Holdings’s stock based on a variety of factors. The third quarter results for GDYN were consistent with the predictions, demonstrating a sense of stability in demand. Also, the company managed to secure 10 new enterprise clients during this quarter, increasing the total number of clients to 28 for the year to date. This is an indication that even amid the economic uncertainties, the interest in digital transformation stays robust.
While the future prospects suggest a subdued demand in the near term, Tandon perceives this as a cyclical rather than a permanent issue. He is confident that the company will bounce back to its regular organic growth rate of over 20% once the macroeconomic conditions get better. The shares of GDYN are currently trading at a modest EV/FY25 EBITDA multiple of about 11x. Given the company’s potential for strong secular growth and margin expansion, Tandon considers the risk-reward balance to be favorable. Hence, he maintains his Buy rating and $14 target for the GDYN stock.
According to TipRanks, Tandon is a 3-star analyst with an average return of 1.4% and a 41.06% success rate. Tandon covers the Technology sector, focusing on stocks such as Block, nCino, and Agilysys.
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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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