On Monday, Noble Capital revised its price target for Snail Inc. (NASDAQ:SNAL) shares, lowering it to $6.00 from the previous $9.00, while continuing to recommend the stock with an Outperform rating. The adjustment comes as the firm recalibrates its forecast for the company's adjusted EBITDA in 2025.
The analyst from Noble Capital provided insight into the decision, noting that Snail Inc.'s shares are currently trading at a multiple that is significantly below the industry average. According to their analysis, Snail Inc. trades at 1.0 times its projected enterprise value to the adjusted EBITDA for the year 2025, which is markedly less than the roughly 10 times EV/2025 EBITDA ratio seen across the industry peer group.
The revised price target of $6.00 per share is based on a newly established target multiple of 8.5 times, which remains under the industry average. Despite the reduction in the price target, Noble Capital maintains an optimistic view of the company's performance potential, as reflected in the Outperform rating.
The report by Noble Capital indicates a strategic reassessment of Snail Inc.'s valuation in light of the updated earnings forecast. This reduction in the price target is a reflection of the recalibrated expectations for the company's financial performance looking ahead to 2025.
Snail Inc.'s stock rating remains unchanged despite the lowered price target, signaling that the firm still sees a positive outlook for the company relative to the market, albeit with moderated expectations for its future earnings before interest, taxes, depreciation, and amortization.
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