Rufus Hone, an analyst from BMO Capital, maintained the Hold rating on AvidXchange Holdings (AVDX – Research Report). The associated price target is $13.00.
Rufus Hone has given his Hold rating due to a combination of factors surrounding AvidXchange Holdings’s recent performance and future prospects. While the company’s fourth quarter results surpassed expectations and its EBITDA forecasts for the upcoming years were raised, Hone sees this as partially priced into the current stock valuation. AvidXchange’s guidance for 2024 appears conservative, yet it has a history of outperforming its initial projections, suggesting there could be room for upside surprises. Moreover, the company has demonstrated significant improvements in efficiency and a stronger core transaction yield, contributing to a better financial outlook.
Despite these positive indicators and the subsequent increase in target price from $11 to $13, Hone believes there is only modest potential for stock appreciation given AvidXchange’s current market valuation. Additionally, within the small to mid-cap market, Hone suggests there are better relative investment opportunities in other companies with Overperform ratings, specifically naming NVEI and RELY. This assessment reflects a balanced view of AvidXchange’s strong operational performance against the backdrop of market expectations and comparative investment alternatives.
Hone covers the Financial sector, focusing on stocks such as Mastercard, Western Union, and Paypal Holdings. According to TipRanks, Hone has an average return of 9.4% and a 69.35% success rate on recommended stocks.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $13.00 price target.
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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:
- AvidXchange sees FY24 revenue $441M-$447M, consensus $444.31M
- AvidXchange reports Q4 EPS (2c), consensus 1c
- AvidXchange Announces Fourth Quarter 2023 Financial Results
- AvidXchange price target raised to $12 from $10 at Wells Fargo
- AvidXchange Announces Timing of Its Fourth Quarter 2023 Financial Results Conference Call and Webcast
