Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - DA Davidson lowered its price target on CPI Card Group (NASDAQ:PMTS) to $32 from $38 while maintaining a Buy rating on Monday. The stock, currently trading at $13.25, has declined over 29% in the past week and is trading near its 52-week low of $12.52. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
The firm adjusted its outlook following CPI Card Group’s second-quarter results, which exceeded DA Davidson’s forecasts when accounting for an intraquarter accounting change.
Management raised its 2025 revenue growth guidance and maintained its projection for mid-to-high single-digit growth in adjusted EBITDA.
The updated 2025 outlook does not reflect potential impacts from proposed semiconductor tariffs announced last week, which factored into DA Davidson’s decision to reduce its price target.
The firm trimmed its financial forecasts, which had already incorporated the Arroweye deal, but maintained its Buy rating on the stock despite the lower price target.
In other recent news, CPI Card Group Inc . announced its second-quarter earnings for 2025, which fell significantly below analysts’ expectations. The company reported earnings per share (EPS) of $0.04, a stark contrast to the anticipated $0.67. This resulted in a surprise of -94.03%. Additionally, CPI Card Group’s revenue was reported at $129.8 million, which also missed the forecasted $132.98 million. These developments have drawn attention from investors and analysts alike. The earnings miss and lower-than-expected revenue figures are key points of focus for those tracking the company’s financial performance.
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