Investing.com - Financial Markets Worldwide

DA Davidson lowers Riskified stock price target to $6 on growth concerns

Published 18/08/2025, 20:36
© Credit: Karen Haberberg, Riskified PR
RSKD
4.33%

Investing.com - DA Davidson lowered its price target on Riskified Ltd. (NYSE:RSKD) to $6.00 from $6.50 while maintaining a Buy rating on the stock. Currently trading at $4.46, InvestingPro analysis suggests the stock is undervalued, with the company maintaining a "GOOD" overall Financial Health score.

The price target reduction follows Riskified’s second-quarter 2025 results, which showed revenue and adjusted EBITDA outperformance, but was accompanied by a flat full-year revenue guidance excluding the current quarter’s beat.

Riskified maintained its adjusted EBITDA outlook for the year despite the revenue outperformance in the second quarter, according to DA Davidson’s analysis.

The firm noted positive trends in new business acquisition during the quarter, with non-chargeback guarantee offerings showing strong growth of over 100% year-over-year, though same-store sale pressure continues to impact overall growth.

DA Davidson’s revised price target of $6.00 represents 15 times Riskified’s projected 2026 free cash flow, with the firm highlighting encouraging pipeline health driven primarily by international expansion.

In other recent news, Riskified Ltd reported its earnings for the second quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.02, which was significantly above the anticipated EPS of -$0.06. This represents a surprise of -133.33% in earnings. Additionally, Riskified reported revenue of $81.1 million, exceeding the forecasted $79.99 million. These positive financial results indicate the company’s strong performance during the quarter. Despite the favorable earnings report, the stock experienced a premarket decline, but this movement is not the focus here. Investors and analysts may find these developments noteworthy as they reflect Riskified’s ability to outperform market expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.