TD Cowen analyst Lance Vitanza maintained a Buy rating on KORE Group Holdings (KORE – Research Report) today and set a price target of $2.00.
Lance Vitanza has given his Buy rating to KORE Group Holdings based on several key factors. In particular, he highlighted the successful resolution of KORE’s immediate balance sheet issues, which was achieved through securing $150 million of preferred equity with Searchlight Capital. This move not only bolsters KORE’s liquidity but also reduces their cash interest by 40%, and significantly extends their financial runway, all while growing their global sales pipeline to $740 million of Total Contract Value (TCV).
Furthermore, Vitanza was encouraged by the company’s strategic decision to use the bulk of the new funding to pay down its outstanding term loan, reducing it to $185 million from the previous $304 million. This move also allowed an additional $15 million to be added to the company’s balance sheet. KORE also secured a new term loan agreement with Whitehorse Capital that extends the loan maturity to November 2028, albeit with a modest initial borrowing cost increase. These strategic moves, in Vitanza’s view, positions KORE favorably, justifying his Buy rating.
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KORE Group Holdings (KORE) Company Description:
Cerberus Telecom Acquisition Corp is a blank check company.
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