B.Riley initiates Avepoint stock with Buy rating on Microsoft integration

Published 26/08/2025, 08:26
B.Riley initiates Avepoint stock with Buy rating on Microsoft integration

Investing.com - B.Riley initiated coverage on AvePoint Inc. (NASDAQ:AVPT) with a Buy rating and a $25.00 price target, representing potential upside of 67% from current levels. According to InvestingPro data, the stock has shown strong momentum with a 41% return over the past year, despite recent market volatility.

The research firm cited AvePoint’s position as a SaaS provider of cloud-native data management services, including data backup, data security, and governance, noting the company is gaining market share in the data backup market through integrated solutions.

B.Riley highlighted AvePoint’s tight integration with Microsoft applications, particularly Microsoft 365, and its established global brand for managing data in these environments.

The firm identified artificial intelligence as a transformative market catalyst for data security vendors like AvePoint, as AI can potentially expose sensitive information when data isn’t adequately protected.

B.Riley also pointed to AvePoint’s profitability, expanding margins, healthy cash generation, large cash balance, and active share buyback program, noting the company is on track to achieve the Rule of 40 this year and trades at 31x CY27E EPS.

In other recent news, AvPoint Inc. reported its second-quarter 2025 earnings, which showed an earnings per share (EPS) of $0.01, falling short of the projected $0.06. Despite this miss, the company exceeded revenue expectations, reporting $102 million, which was a 5.94% surprise. In another development, Evercore ISI has adjusted its price target for AvPoint, raising it from $20 to $22 while maintaining an Outperform rating. This adjustment reflects a valuation approximately 10 times the enterprise value to calendar year 2026 revenue ratio for the company, according to Evercore ISI. These recent developments provide investors with a mix of financial performance and analyst perspectives on AvPoint’s potential.

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