In a report released today, Andrew Bauch from Wells Fargo maintained a Hold rating on AvidXchange Holdings (AVDX – Research Report), with a price target of $10.00.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding AvidXchange Holdings. The newly launched next-generation payments platform is expected to encourage more electronic transactions among customers, which could lead to increased business opportunities and revenue growth. However, this platform and its benefits appear to be currently misunderstood by the market. Additionally, the management has identified potential areas for take rate expansion which could culminate in revenue tailwinds by 2024/2025, including invoice acceleration and various expense management solutions.
The company’s focus on middle market (MM) companies provides a stable foundation, granting downside protection through economic cycles due to their historical resiliency compared to smaller businesses. While the revenue stream is highly recurring and visibility for 2024 is clear, this also limits the potential for significant financial surprises. Looking further ahead, new partnerships, like those with Appfolio and M3, present opportunities for long-term growth, but these are anticipated to contribute more significantly beyond 2024, thus not immediately affecting the current investment outlook.
Bauch covers the Technology sector, focusing on stocks such as AvidXchange Holdings, Shopify, and Block. According to TipRanks, Bauch has an average return of -6.4% and a 44.90% success rate on recommended stocks.
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AvidXchange Holdings (AVDX) Company Description:
AvidXchange Holdings Inc is a provider of AP automation software and payment solutions for middle-market businesses and their suppliers. It generates the majority of its sales from Payment revenue followed by Software revenue and Services revenue.
Read More on AVDX:
- Pay Integration for CoreSelect™ Live, AvidXchange and M3 Partnership Revolutionizes Hotel Accounting with Fully Automated Financial Management Solution
- AvidXchange Releases Top Priorities and Trends for Finance Leaders in 2024
- AvidXchange to Participate in Upcoming Investor Conferences
- AvidXchange price target raised to $12 from $11 at Susquehanna
- AvidXchange Announces Partnership with AppFolio to Enhance AP Automation Benefits for its 19,000 Real Estate Customers
