Analyst David Hynes of 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 to Kaltura due to a combination of factors. On one hand, the company has demonstrated steady execution against profit targets. It has also achieved its first EBITDA profitable quarter since 2020, indicating that the company is on a path towards sustainable profitability by 2024. Furthermore, despite macroeconomic pressures impacting new business, the anticipated revenue downtick in Q4 is expected to be a one-time event, setting Kaltura up for a resumption of growth in 2024. The pace of this growth will be significantly influenced by the Q4 selling period.
In addition, Hynes noted the improvement in sales productivity metrics, despite a decrease in the company’s sales force size. He also mentioned the successful introduction of new AI features and the consolidation of customer use cases, both of which should continue driving demand. With the expectation of improving growth and expanding margins in the next year, Hynes believes that Kaltura’s shares are cheap and thus he sees a buying opportunity. Despite potential retention challenges, Hynes is encouraged by the quality of new customers that have come to Kaltura over the last several quarters. This combination of factors led him to maintain his Buy rating for Kaltura’s stock.
According to TipRanks, Hynes is a 5-star analyst with an average return of 10.4% and a 52.82% success rate. Hynes covers the Technology sector, focusing on stocks such as HubSpot, Five9, and Shopify.
In another report released today, Needham also maintained a Buy rating on the stock with a $5.00 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.
Read More on KLTR:
- Kaltura Announces Financial Results for Third Quarter 2023
- Kaltura sees FY23 revenue $171.5M-$173M, consensus $172.29M
- Kaltura sees Q4 revenue $40.8M-$42.3M, consensus $42.11M
- Kaltura reports Q3 adjusted EPS (2c), consensus (2c)
- Kaltura Announces Virtually Live! 2023: Focused on How AI Is Making Marketing More Human – With Leading Experts from Salesforce, AWS, Google, VMware, Jasper, Adobe, Microsoft, HubSpot, and More
