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Investing.com - Lake Street Capital Markets upgraded Evolv Technologies Holdings Inc. (NASDAQ:EVLV) from Hold to Buy on Friday, raising its price target to $9.00 following strong second-quarter results. The stock has already delivered impressive returns, surging over 100% in the past year and currently trading near its 52-week high of $7.57, according to InvestingPro data.
The security technology company reported better-than-expected revenue and adjusted EBITDA for the second quarter, with 56% of annual recurring revenue (ARR) coming from existing customers. Evolv continues to expand across education, healthcare, and sports & entertainment venues, while also securing a new industrial contract with a Fortune 50 company.
Evolv recently won a significant $15 million contract with Gwinnett County Public Schools, Georgia’s largest school district. The deal includes Evolv Express walk-through weapons detectors and over 100 eXpedite bag screeners to protect more than 180,000 students.
The company has modified its fulfillment model for direct-sold units, now selling equipment directly to end customers with a software subscription component. This purchase-plus-subscription approach replaces the previous distribution partner arrangement, offering what the company describes as its highest net present value sales arrangement despite a slight gross margin impact.
Lake Street Capital cited "strengthening tailwinds" for the business as justification for the rating upgrade and higher price target, raising its 2025 revenue and adjusted EBITDA forecasts for the company. Based on InvestingPro’s comprehensive analysis, which includes 11 additional investment tips and detailed financial metrics, the stock appears to be trading above its Fair Value. Discover the complete financial health analysis and growth potential in the exclusive Pro Research Report, available with an InvestingPro subscription.
In other recent news, Evolv Technologies Holdings Inc. reported its Q2 2025 earnings, surpassing expectations with an earnings per share (EPS) of -0.02 USD, compared to the forecasted -0.05 USD. The company’s revenue reached 32.5 million USD, exceeding the anticipated 30.95 million USD. These results highlight a strong performance for the quarter. In addition, TD Cowen has reinstated its coverage of Evolv Technologies with a Buy rating and set a price target of 10.00 USD. This reinstatement comes after the company addressed previous financial restatements and regulatory concerns, and new management took control. These developments reflect a positive outlook from analysts on the company’s growth prospects. Investors are closely monitoring these updates as they provide insights into Evolv Technologies’ current standing and future potential.
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