Northland Securities analyst Nehal Chokshi reiterated a Buy rating on AvePoint (AVPT – Research Report) today and set a price target of $11.00.
Nehal Chokshi’s recommendation to buy AvePoint’s stock (AVPT) is grounded on a variety of factors.
Firstly, the company displayed an impressive performance in the third quarter of 2023 (3Q23) despite the challenging macroeconomic environment. This performance was characterized by top and bottom-line beats, with revenues of $72.8M, a 16% year-over-year (y/y) increase. The company also reported strong go-to-market strategies, resulting in new customer acquisitions and expansions with existing customers. Moreover, AvePoint’s Annual Recurring Revenue (ARR) of $250.6M, a 23% y/y increase, surpassed the consensus estimate.
Secondly, AvePoint has shown promising growth potential. The company’s guidance for ARR for the financial year 2023 (FY23) is $262M, a raise from the previous guidance of $260.5M, which indicates a projected growth rate of 22% y/y for the December quarter. Furthermore, despite the ongoing tough macro environment, AvePoint managed to raise its foreign exchange (FX) adjusted Net Revenue Retention (NRR) by 100 basis points to 108%. Lastly, the company’s gross margin (GM) increased due to a better mix as services become a lesser percentage of revenue, a trend that AvePoint expects to continue. In conclusion, Chokshi’s buy rating is influenced by AvePoint’s strong Q3 performance and promising growth trajectory.
In another report released today, Evercore ISI also maintained a Buy rating on the stock with a $9.00 price target.
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AvePoint (AVPT) Company Description:
Apex Technology Acquisition Corp is a blank check company.
Read More on AVPT:
- AvePoint Announces Third Quarter 2023 Financial Results
- AvePoint to Announce Third Quarter 2023 Financial Results on November 9
- AvePoint announces launch of AI Trust Foundation
- AI Trust Foundation Launches at AvePoint #shifthappens Conference to Advance Beneficial AI
- AvePoint launches AvePoint Opus, AI powered information management solution
