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On Thursday, Benchmark analyst Mark Zgutowicz revised the price target for Global-E Online Ltd. (NASDAQ:GLBE), reducing it from $68.00 to $64.00, while continuing to endorse the stock with a Buy rating. The adjustment followed a significant drop in the company’s stock, which fell by over 10% in aftermarket trading despite reporting strong fourth-quarter results. According to InvestingPro data, GLBE has experienced an 18.87% decline over the past week, though analyst consensus remains strongly bullish with a mean target of $61.50.
Zgutowicz pointed out that the initial fiscal year 2025 guidance from Global-E’s management fell short of consensus expectations, but he interpreted this as a sign of management’s cautious stance rather than an indication of any serious growth impediments. This view was corroborated by the company’s management. The analyst highlighted the robust momentum that Global-E experienced in January and the notable increase in monthly transacting users (MTU) during the fourth quarter. The company’s strong financial position is evident in its healthy current ratio of 2.08 and impressive revenue growth of 32.08% over the last twelve months, as reported by InvestingPro.
The company’s prospects for fiscal year 2025 appear promising, according to Zgutowicz, thanks to recent launches of new products and services. These initiatives are designed to boost adoption among both budget-conscious and premium customers. Additionally, the anticipated launch of full-fledged loan offerings by all three digital banks associated with Global-E is expected to contribute to the company’s continued strong growth.
Benchmark’s analysis suggests that Global-E is well-positioned for the upcoming fiscal year and could potentially outperform expectations, leading to another cycle of beating projections and raising future guidance. Zgutowicz recommended investors to take advantage of the current dip in stock price as an opportunity to increase their holdings, reaffirming the Buy rating and setting a price target of $64.00.
In other recent news, Global-E Online Ltd reported a significant 42% increase in revenue for the fourth quarter of 2024, reaching $263 million, alongside a 44% rise in Gross Merchandise Value (GMV). The company achieved its first quarter of GAAP profitability, with an adjusted EBITDA margin exceeding 20%. Despite these strong results, Global-E’s stock faced pressure due to a 2025 growth forecast that fell short of expectations, with revenue projected to grow by 25% to between $917 million and $967 million. Analysts from Raymond (NSE:RYMD) James, Needham, and Citizens JMP have maintained positive ratings on Global-E, with price targets set at $60, $64, and $64, respectively. Raymond James noted that the conservative 2025 guidance might present a buying opportunity, while Needham emphasized the potential benefits of tariffs for Global-E’s platform. The company’s expansion into consumer electronics, with new partnerships like Logitech (NASDAQ:LOGI), reflects its strategic growth initiatives. Global-E’s AI-driven customer service chatbot, which resolves nearly half of customer service tickets in real-time, is part of its ongoing investment in technology to enhance service offerings.
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