Microvast Holdings announces departure of chief financial officer
On Friday, Citi analyst Andrew Schmidt adjusted the price target for MeridianLink (NYSE:MLNK) shares, reducing it to $20.00 from the previous figure of $24.00. Despite this change, Schmidt maintained a Neutral rating on the company’s stock. According to InvestingPro data, analyst targets for MLNK range from $18 to $28, with the stock currently trading at $18.43. InvestingPro analysis indicates the stock is fairly valued at current levels. The revision follows MeridianLink’s fourth-quarter revenue report which aligned with Citi’s projections and exceeded the consensus. The company saw approximately 9% growth in Consumer Loan Origination System (LOS) revenue. InvestingPro data shows the company’s total revenue reached $316.3 million in the last twelve months, with a healthy gross profit margin of 71.8%.
Schmidt highlighted that MeridianLink’s adjusted EBITDA for the quarter was slightly above expectations, with InvestingPro reporting last twelve months EBITDA at $66.93 million. The company also reported strong new logo bookings, marking a two-year peak, including a significant win with an $8 billion asset size bank. These positive developments were tempered by a one-time down-sell, cautious lending volume forecasts, and ongoing investments, which collectively influenced the fiscal year 2025 outlook to be roughly consistent with consensus expectations. InvestingPro Tips reveal that while the company’s liquid assets exceed short-term obligations, it currently trades at a high EBITDA valuation multiple.
The analyst expressed optimism about the company’s direction, noting improvements in market response and communication clarity. Schmidt suggested that these factors could provide a more solid foundation for MeridianLink’s future growth. However, the call for maintaining a Neutral rating reflects a need for consistent performance in an unpredictable economic landscape and a clearer path to long-term growth. For deeper insights into MLNK’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available exclusively on InvestingPro.
In summary, Citi’s assessment of MeridianLink acknowledges the company’s recent successes and improved transparency, but also considers the challenges ahead. The revised price target reflects a cautious stance, taking into account the company’s financial outlook and the broader macroeconomic conditions.
In other recent news, MeridianLink Inc. reported its fourth-quarter 2024 earnings, highlighting a notable miss on earnings per share (EPS), which stood at -$0.10 compared to the forecasted $0.08. Despite the EPS miss, MeridianLink exceeded revenue expectations with $79.4 million, slightly above the anticipated $78.73 million, marking a 7% year-over-year growth. The company also reported a full-year revenue of $316.3 million, reflecting a 4% increase from the previous year. Adjusted EBITDA for the fourth quarter was $33.4 million, with a 42% margin, and free cash flow amounted to $12.1 million, representing 15% of the quarter’s revenue.
MeridianLink’s financial position remains stable, with cash and cash equivalents totaling $92.8 million. Looking ahead, the company has set a revenue guidance range of $326 million to $334 million for 2025, aiming for a 3-6% growth. Adjusted EBITDA is expected to range between $131.5 million and $137.5 million. The company’s strategic focus continues to be on digital transformation and operational efficiencies, as emphasized by CEO Nicholas Block and President Larry Katz. Analysts from firms such as William Blair and Citi have shown interest in the company’s strategic direction and investment plans for 2025, particularly in sales, marketing, and product infrastructure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.