Cantor Fitzgerald assumes coverage on Avepoint stock with Overweight rating

Investing.com - Cantor Fitzgerald has assumed coverage on Avepoint Inc. (NASDAQ:AVPT) with an Overweight rating and a price target of $22.50, up from the previous target of $20.00. According to InvestingPro data, the stock has delivered an impressive 68% return over the past year, with analyst targets ranging from $17 to $26.

The research firm cited Avepoint’s strong positioning to benefit from secular data management growth trends, including governance, compliance, and centralized management of diverse SaaS applications, particularly Microsoft (NASDAQ:MSFT) 365. The company’s solid financial foundation is evident in its strong balance sheet, with InvestingPro analysis showing more cash than debt and a healthy current ratio of 2.15.

Cantor Fitzgerald noted that Avepoint is a leader in data management related to Microsoft 365 Copilot, with market checks indicating the company is included in nearly 100% of competitive evaluations for related services.

The firm also highlighted Avepoint as a beneficiary of broader digital transformation trends, as the company orchestrates and automates the migration of legacy workloads and related data to the cloud.

Additional catalysts supporting Cantor Fitzgerald’s outlook include increased visibility from existing customers, growing managed service provider annual recurring revenue (expanding at a 60% CAGR from 2020-2024), and improving free cash flow margins. The company’s revenue grew 21.7% in the last twelve months, with analysts expecting continued profitability this year. Discover more insights and 12 additional ProTips with InvestingPro’s comprehensive research report.

In other recent news, AvePoint Inc. reported its first-quarter 2025 earnings, revealing total revenues of $93.1 million, which exceeded the forecast of $88.31 million. This strong financial performance was further highlighted by a 34.37% increase in SaaS revenue. Additionally, Evercore ISI analyst Kirk Materne raised AvePoint’s stock price target to $20.00 from $17.00, maintaining an Outperform rating. Materne cited the company’s robust annual recurring revenue growth of 26% and a 25% rise in overall revenue as key factors in the upgrade.

AvePoint’s management expressed optimism about future growth, projecting a 23.5% revenue increase for the second quarter, which is above Wall Street’s expectations. The company also increased its fiscal year 2025 revenue growth guidance midpoint to 21.5%, up from the previous 16%. In another development, Jefferies initiated coverage on AvePoint with a Buy rating and a price target of $22.00, emphasizing the company’s solid position in the data protection platform space.

Furthermore, AvePoint introduced new capabilities to its Confidence Platform, including command centers for cost optimization and data resilience, and expanded governance features for Microsoft Copilot agents. These initiatives aim to provide organizations with better visibility into cost-saving opportunities and enhance data infrastructure management.

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