In a report released yesterday, Michael Turrin from Wells Fargo maintained a Sell rating on Kaltura (KLTR – Research Report), with a price target of $1.50.
Michael Turrin’s rating is based on a thorough analysis of Kaltura’s recent financial performance and future outlook. Kaltura’s first quarter results aligned with expectations, but the company’s projection for the year indicates little to no year-over-year growth, and similarly, negligible adjusted EBITDA margin improvement. Turrin’s evaluation considers these static growth prospects and the absence of substantial factors that could potentially drive the stock’s value upward.
The slowing subscription revenue growth, along with a significant year-over-year decline in calculated bookings, further supports the Sell rating. Additionally, Kaltura faces ongoing challenges in the industry, such as extended sales cycles, budget limitations, and heightened competition. Despite management’s initiatives to focus on AI and market consolidation, Turrin remains cautious due to the unclear impact on revenue acceleration and the company’s long-term growth and margin expansion trajectory.
KLTR’s price has also changed moderately for the past six months – from $1.810 to $1.230, which is a -32.04% drop .
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Kaltura (KLTR) Company Description:
Kaltura Inc provides live and on-demand video SaaS solutions to thousands of organizations around the world, engaging hundreds of millions of viewers at home, at work, and at school. It also offers specialized industry solutions, including Learning Management System Video, Lecture Capture, and Virtual Classroom for educational institutions, as well as a TV Solution for media and telecom companies.
