Needham analyst Chris Pierce reiterated a Buy rating on Urgent.ly Inc (ULY – Research Report) today and set a price target of $5.00.
Chris Pierce has given his Buy rating due to a combination of factors surrounding Urgent.ly Inc’s recent developments and future outlook. Despite the company losing a legacy customer that contributed to approximately 25% of its revenues, Urgent.ly has secured a new top 5 global OEM customer, which presents a significantly larger opportunity in the long run. This strategic customer win is anticipated to propel the company’s growth much more substantially than the lost revenue from the previous customer.
Additionally, the company has upheld its guidance for positive non-GAAP earnings in the third quarter of 2024, even with a reduced revenue base. They have also maintained their targets for long-term growth and margins. Chris Pierce’s revised price target of $5 reflects a lowered multiple due to increased uncertainty, but still represents an attractive entry point based on 7.5 times the projected 2026 adjusted EBITDA, discounted back from a previous multiple of 10 times. This combination of a strategic win, consistent guidance, and long-term potential underpin the rationale behind the Buy rating.
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Urgent.ly Inc (ULY) Company Description:
Urgent.ly Inc. is engaged in providing connected mobility assistance software platform. The platform matches vehicle owners and operators with service professionals who deliver traditional roadside assistance, proactive maintenance, and repair services. The Company operates through one segment: Mobility Assistance Services. The Mobility Assistance Services segment includes all products, services and software. The Company serves to the industries, such as insurance, automotive, and fleets and rental. The Company offers roadside assistance services (RAS) initiated through its software platform primarily in the United States and Canada. The Company¿s platform enables its customers (Customer Partners) to outsource delivery for all or portions of their roadside assistance programs. The Company manages the RAS process after receiving the initial distress call or Web-based request through final disposition.
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