DA Davidson lifts Riskified price target to $6.50, keeps Buy rating

On Thursday, DA Davidson increased its price target on Riskified Ltd. (NYSE:RSKD) shares to $6.50, up from the previous $6.00, while reaffirming a Buy rating on the stock. The decision came after Riskified reported first-quarter financial results for 2025 that exceeded expectations. According to InvestingPro data, the stock has shown strong momentum with a 10.81% gain in the past week, though current analysis suggests the stock is trading near its Fair Value. Despite the better-than-expected performance, the company’s management has chosen to maintain its guidance for the year, suggesting a more conservative stance on projected revenue and profitability.

Riskified, which specializes in e-commerce fraud protection, has shown a strong start to the year with its Q1 2025 results, maintaining solid revenue growth of 9.3% and a healthy gross profit margin of 50.8%. The company’s management, however, has not adjusted the full-year 2025 outlook, potentially setting the stage for future outperformance. InvestingPro analysis indicates strong financial health with a current ratio of 6.96, suggesting excellent liquidity management. DA Davidson’s analyst Gil Luria noted the conservative nature of the guidance but pointed to the possibility of Riskified surpassing expectations due to solid growth in new customer acquisitions and increased adoption of its non-chargeback products.

The company’s expansion efforts are also looking promising, with positive pipeline trends reported this quarter. Riskified is actively working on broadening its market reach, both geographically and across different industry verticals, which could contribute to future growth. InvestingPro data reveals multiple positive indicators, including expected net income growth this year and strong cash position. Subscribers can access 8 additional ProTips and comprehensive analysis through the Pro Research Report.

Luria’s revised price target of $6.50 is based on a 15x multiple of Riskified’s forecasted free cash flow for 2026. This valuation reflects confidence in the company’s growth trajectory and the potential for its financial performance to improve beyond the current conservative estimates provided by management. The company’s market capitalization currently stands at $870 million, with analysts maintaining a moderate buy consensus.

Riskified’s share price adjustment reflects the company’s solid performance and DA Davidson’s positive outlook on its growth prospects, despite the unchanged guidance for the rest of the year.

In other recent news, Riskified Ltd reported impressive first-quarter 2025 financial results, significantly surpassing analyst expectations. The company posted an earnings per share of $0.03, defying forecasts of a $0.08 loss. Riskified’s revenue reached $82.39 million, exceeding the anticipated $79.23 million and marking an 8% increase year-over-year. The company also achieved a positive adjusted EBITDA of $1.3 million for the sixth consecutive quarter. Riskified’s strong performance was bolstered by a 7% year-over-year increase in Gross Merchandise Volume, reaching $34.2 billion. Additionally, the company repurchased 4.1 million shares for $20.7 million, indicating a strategic move to manage shareholder value. Analyst firms such as Truist Securities and KBW have noted Riskified’s competitive advantages in fraud detection and its strategic expansion in the AI and machine learning sectors. The company’s outlook for 2025 includes projected revenue between $333 million and $346 million, with adjusted EBITDA expected to range from $18 million to $26 million.

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