On Friday, Truist Securities maintained its Buy rating on shares of Riskified Ltd. (NYSE: NYSE:RSKD), with a steady price target of $8.00. The endorsement follows the firm's attendance at Riskified's annual user conference, Ascend, held in Brooklyn. The conference provided insights into current trends in eCommerce fraud, platform improvements, and customer success stories.
During the event, discussions highlighted how Riskified's platform aids large merchants in fraud prevention, cost reduction, and revenue growth. The platform's role in the eCommerce tools ecosystem is increasingly seen as vital for merchants aiming to expand their business securely and profitably.
Truist Securities expressed an increased optimism about Riskified's potential to serve as a protective measure against fraud for significant merchants around the world. The firm's analyst noted the importance of Riskified's collaboration with some of the largest eCommerce merchants, emphasizing its impact on their ability to flourish in a challenging online environment.
The analyst's statement from the conference underlined the value proposition of Riskified, "We are incrementally positive on the company's growing opportunity to protect large merchants from fraud globally, work closely with some of the largest eCommerce merchants in the world to help them grow profitably, and become a mission critical system in their eCommerce tools environment."
In other recent news, Riskified, a company specializing in fraud and risk intelligence, reported a robust financial performance with an 11% increase in revenue and an 18% rise in non-GAAP gross profit. The company also executed a share repurchase program and revised its fiscal year 2024 adjusted EBITDA forecast upwards. These developments are indicative of Riskified's financial health and future prospects.
Riskified also unveiled new AI-powered capabilities at the Ascend 2024 summit, aimed at helping merchants combat increasingly sophisticated fraud and abusive behavior. The highlight of these new offerings is Policy Decisions, a tool that allows merchants to adapt to dynamic ecommerce environments.
Barclays (LON:BARC) maintains an 'Equalweight' rating on Riskified, while Keefe, Bruyette & Woods, and DA Davidson have raised their stock price targets based on the company's strong quarterly performance. Truist Securities also increased its price target for Riskified, maintaining a 'Buy' rating. Analysts from these firms have given positive feedback on the company's current position and future growth potential.
InvestingPro Insights
Recent data from InvestingPro underscores the strategic maneuvers Riskified Ltd. (NYSE: RSKD) has been making to solidify its position in the market. With a market capitalization of $1.11 billion and a notable 12.46% revenue growth over the last twelve months as of Q1 2024, the company is showing signs of robust expansion. This growth is complemented by a strong gross profit margin of 52.1%, highlighting the efficiency of Riskified's business model in generating earnings relative to its revenue.
InvestingPro Tips reveal that Riskified's management has been confident enough in the company's prospects to engage in aggressive share buybacks. Additionally, the company's financial health is reflected in its holdings, with more cash than debt on its balance sheet and liquid assets that exceed short-term obligations. While the company has not been profitable over the last twelve months, analysts predict profitability this year, which may explain the impressive 39.32% year-to-date price total return.
For investors considering Riskified's potential, these metrics and insights can be further explored with additional tips available on InvestingPro. With a coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access a total of 9 InvestingPro Tips for Riskified, including information on its trading near 52-week high and strong return over the last three months.
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