Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, Northland upgraded Evolv Technologies Holdings Inc. (NASDAQ:EVLV) stock rating from Market Perform to Outperform, setting a price target of $7.50. The upgrade comes as the stock has shown remarkable momentum, with InvestingPro data showing a 25.34% return in the past week and trading near its 52-week high of $5.89. The decision came after Evolv’s first earnings call with its new CEO and CFO following a series of financial restatements. The company reported revenue that aligned with their previous announcement, marking a 44% increase, with recurring revenue climbing 36%. According to InvestingPro data, the company maintains strong growth with a 30.54% revenue increase over the last twelve months and an impressive gross margin of 57.08%. Moreover, Evolv’s adjusted EBITDA reached $1.7 million, a significant improvement over Northland’s estimate of negative $280,000.
The management at Evolv Technologies has observed positive changes in sales cycles and a shift towards more comprehensive subscription sales. Despite the internal changes the company has undergone, management is projecting a healthy annual growth rate of 20-25%. This projection and the recent financial outcomes have prompted Northland to revise their estimates upward.
The analyst’s commentary highlighted the company’s performance and management’s efforts, stating, "Evolv held their first earnings call with their new CEO and CFO post the restatements. Revenue was in-line with the pre-announcement, up 44% (recurring revenue up 36%), and adj EBITDA hit $1.7 vs our ($280)k estimate. Management has started to see improvements in sales cycles and a positive shift to more full subscription sales. Forecasts healthy 20-25% year growth despite changes. We are increasing our estimates, and rating to Outperform with a $7.50 target."
Evolv Technologies’ positive earnings call and the subsequent upgrade from Northland suggest a turning point for the company, as it begins to realize the benefits of its new leadership and strategic adjustments. With a market capitalization of $905.63 million, the company shows promise despite current unprofitability. The new price target of $7.50 represents Northland’s confidence in the company’s growth trajectory and operational improvements. For deeper insights into EVLV’s valuation and 13 additional key metrics, explore the comprehensive research available on InvestingPro.
In other recent news, Evolv Technologies Holdings Inc. reported strong financial results for the first quarter of 2025, surpassing expectations. The company achieved revenue of $32 million, exceeding the forecasted $28.15 million, and reported an adjusted earnings per share of -$0.02, which was better than the anticipated -$0.06. Evolv Technologies also noted a 44% year-over-year increase in revenue and a 34% rise in Annual Recurring Revenue (ARR). The company’s adjusted EBITDA improved significantly to $1.7 million from a loss of $10.4 million in the first quarter of the previous year.
Looking ahead, Evolv Technologies projects a revenue growth of 20-25% for the full year 2025, aiming for $125-$130 million. The company plans to deploy approximately 8,000 units in 2025, focusing on a pure subscription model. Additionally, Evolv has introduced strategic initiatives like the Expedite autonomous bag screening solution and a Certified Pre-Owned program to drive growth. The company has also successfully resolved an FTC inquiry and completed a restatement affecting revenue recognition, enhancing its financial oversight. Analysts from firms like Craig Hallum have noted the company’s strong commitment to expanding its customer base and maintaining high customer satisfaction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.