Evolv stock price target raised to $5.50 by Lake Street

Published 21/05/2025, 14:42
Evolv stock price target raised to $5.50 by Lake Street

On Wednesday, Lake Street Capital Markets analyst Eric Martinuzzi increased the price target for Evolv Technologies Holdings Inc. (NASDAQ:EVLV) to $5.50, up from the previous target of $4.00. The firm maintained a Hold rating on the company’s stock. The stock, currently trading at $5.95, has shown remarkable momentum with an 88% return over the past year. According to InvestingPro data, the stock is trading near its 52-week high of $5.89.

Martinuzzi’s adjustment in the price target reflects a positive outlook on the company’s sales strategy, which offers its Evolv Express service in three different formats to meet customer preferences. These options include direct hardware sales with a subscription service, hardware sales through distributor Columbia Tech coupled with a subscription service, and a pure subscription model. The company has demonstrated strong revenue growth of 30.5% in the last twelve months, reaching $103.9 million.

In the latter half of 2025, Evolv Technologies observed a market trend leaning towards subscription purchases. This model is seen as beneficial for the company as it not only provides higher margins but also ensures a more stable and predictable Annual Recurring Revenue (ARR) over a four-year period compared to one-time hardware sales.

The analyst noted that while hardware sales can temporarily boost revenue, the subscription model is superior in terms of long-term financial health. In light of these observations, Lake Street Capital Markets has raised its revenue forecast for Evolv Technologies for the year 2025.

The updated price target also comes after Evolv Technologies successfully met its regulatory obligations, returning to good standing with both its SEC filings and Nasdaq listing requirements. This compliance has contributed to the firm’s decision to increase the price target to $5.50. InvestingPro analysis reveals 13 additional investment tips for EVLV, including detailed insights on the company’s financial health and market position. Get access to comprehensive Pro Research Reports covering what really matters about 1,400+ stocks, including EVLV, through intuitive visuals and expert analysis.

In other recent news, Evolv Technologies reported strong financial results for Q1 2025, surpassing expectations with a revenue of $32 million, which exceeded the forecasted $28.15 million. The company also outperformed earnings per share (EPS) estimates, reporting an adjusted EPS of -$0.02 compared to the anticipated -$0.06. Additionally, Evolv’s adjusted EBITDA reached $1.7 million, a significant improvement from the previous year’s first quarter loss of $10.4 million. Northland upgraded Evolv Technologies’ stock rating from Market Perform to Outperform, with a price target of $7.50, following the company’s positive earnings call and strategic shifts under new leadership. The company’s annual recurring revenue (ARR) increased by 34% year-over-year, signaling strong growth in its subscription-based model. Evolv Technologies has projected a revenue growth of 20-25% for 2025, aiming for $125-$130 million in revenue. The company plans to deploy approximately 8,000 units in 2025 and is focusing on expanding its subscription model. Despite internal changes and challenges, Evolv’s management remains optimistic about maintaining a healthy growth trajectory, supported by strategic initiatives and a shift towards comprehensive subscription sales.

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