Citizens JMP maintains Global-E stock with $64 target

Published 20/02/2025, 11:06
© Rotem Barak, Global-e PR

On Thursday, Citizens JMP analyst Patrick Walravens reaffirmed a Market Outperform rating for Global-E Online Ltd (NASDAQ: GLBE), with a price target of $64.00. The stock, which has seen a significant 49.71% gain over the past six months despite an 18.87% decline in the past week, is currently trading near InvestingPro’s calculated Fair Value. Walravens acknowledged the company’s initial 2025 guidance suggested a slowdown, with growth expected to decrease to approximately 24% by the fourth quarter of 2025, following the company’s impressive 32.08% revenue growth in the last twelve months. Despite the subdued forecast, he expressed continued optimism about Global-E’s prospects for long-term capital appreciation, supported by the company’s strong financial health score of 2.74 on InvestingPro.

Walravens cited several factors supporting his positive outlook. He emphasized Global-E’s dominant position in the cross-border e-commerce sector and pointed to the significant total addressable market (TAM), which he estimates could reach about $375 billion. This figure is based on a 15% take rate applied to the projected $2.5 trillion cross-border e-commerce consumer market in 2025. The company’s solid financial position is evident in its healthy current ratio of 2.08 and minimal debt levels.

Global-E’s growth is also attributed to its expanding merchant base, which includes increasingly larger retailers. Additionally, the company’s investment in artificial intelligence (AI) is enhancing its service offerings. One notable development highlighted by Walravens is the introduction of an AI-driven customer service chatbot, which is reportedly resolving nearly half of customer service tickets in real-time to the customers’ full satisfaction.

The reaffirmation of the Market Outperform rating and the $64.00 price target by Citizens JMP reflects confidence in Global-E’s strategic position and its potential to capitalize on the growing cross-border e-commerce market. Despite the less than stellar growth forecast for 2025, the company’s leadership and innovation in the sector appear to underpin the analyst’s favorable view.

In other recent news, Global-E Online Ltd reported a strong financial performance for the fourth quarter of 2024, with a 42% increase in revenue, totaling $263 million, and a 44% rise in Gross Merchandise Value (GMV), reaching $1.71 billion. The company also achieved its first quarter of GAAP profitability, marking a significant milestone. Despite these positive results, Global-E Online’s stock experienced a decline due to its 2025 revenue and GMV projections falling slightly short of Wall Street expectations. Analysts from Raymond (NSE:RYMD) James and Needham adjusted their price targets for the company, with Raymond James raising it to $60 and Needham to $64, both maintaining positive ratings. The company’s guidance for 2025 was affected by factors such as normalizing consumer demand and potential tariff impacts, which led to a conservative growth forecast. Nevertheless, Needham highlighted Global-E Online’s forecast for 30% GMV growth and the achievement of GAAP profitability by 2025. Additionally, Global-E Online expanded into consumer electronics with new partnerships, including one with Logitech (NASDAQ:LOGI), showcasing its strategic growth initiatives.

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