On Monday, TD Cowen adjusted its price target for Asure Software (NASDAQ:ASUR), reducing it to $10.00 from the previous $12.00, while keeping a Buy rating on the stock. The adjustment comes after Asure Software confirmed its full-year 2024 guidance, despite mixed first-quarter and second-quarter revenue and EBITDA projections that fell short of consensus estimates by 1% and 2%, respectively.
The company's need to clarify various elements of its business, such as revenue excluding the Employee Retention Tax Credit (ERTC) and tax solutions, has had an impact on its share price. However, TD Cowen's analyst notes that Asure Software's valuation continues to be deeply discounted.
The analyst from TD Cowen highlighted that Asure Software's forward-looking statements suggest an improvement as the company progresses through the fiscal year 2024. The expectation is that clearer core business execution will catalyze a reassessment of the company's valuation.
In response to the recent developments and financial projections, TD Cowen has revised its estimates and price target for Asure Software. Despite the reduction in the price target, the firm maintains a positive outlook on the stock with a continued Buy rating.
InvestingPro Insights
Asure Software's (NASDAQ:ASUR) balance sheet strength is reflected in its cash position, which exceeds its debt, providing a cushion for operational flexibility. This is particularly noteworthy as the company navigates through the fiscal year with an aim to improve its core business execution. Additionally, with a gross profit margin of 71.17% in the last twelve months as of Q1 2024, Asure demonstrates an impressive ability to retain earnings from its revenue, a positive sign for potential investors.
While the company has experienced a decline in its share price over the last three months, dropping by 24.79%, analysts remain optimistic, forecasting a return to profitability within the year. This anticipated turnaround is an important aspect for investors considering Asure's future prospects. Moreover, with a market capitalization of 181.72 million USD and a price to book ratio of 0.92, the company appears to be valued reasonably in relation to its assets.
For those looking to delve deeper into Asure Software's financial health and future prospects, there are additional InvestingPro Tips available. These tips provide a comprehensive analysis, including expectations for net income growth this year and considerations regarding the company's lack of dividend payments to shareholders. To access these insights and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. Currently, there are six more tips available that can guide investment decisions regarding Asure Software.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.