Needham analyst Mayank Tandon has reiterated their bullish stance on GDYN stock, giving a Buy rating on November 20.
Mayank Tandon’s Buy rating for Grid Dynamics Holdings’ shares largely draws from the company’s impressive showing at the recent Analyst Day event in New York City. During this event, the company demonstrated its GenAI capabilities, strategic priorities, and introduced promising long-term financial targets. Although Grid Dynamics is currently experiencing slower growth due to restrained IT spending by Global 2000 firms, Tandon believes the company has effectively navigated this downturn by diversifying its revenue and delivery base.
His optimism also stems from Grid Dynamics’ extensive vertical and domain capabilities, coupled with the positive shifts in the market that are increasing demand for next-generation technologies. Tandon anticipates that as the economic conditions stabilize and IT budgets expand, Grid Dynamics will see improved growth. Furthermore, considering the shares are trading at a reasonable FY25 EV/EBITDA multiple of approximately 12x, Tandon sees a favorable risk-reward situation for a company that is a 20%+ secular grower. This assessment led to the affirmation of his Buy rating with a $14 target.
In another report released on November 20, Citi also maintained a Buy rating on the stock with a $14.00 price target.
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Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GDYN in relation to earlier this year.
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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.
Read More on GDYN:
- Grid Dynamics sees Q4 revenue $76M-$78M, consensus $76.4M
- Grid Dynamics reports Q3 EPS 8c, consensus 8c
- Grid Dynamics releases GenAI Intelligent Document Processing Starter Kit
- Grid Dynamics launches Generative AI Product Data Starter Kit
- Needham software/IT services analysts hold analyst/industry conference call
