Forge Global stock rating reiterated at Market Outperform by Citizens

Investing.com - Citizens maintained its Market Outperform rating on Forge Global Holdings Inc (NYSE:FRGE) with a $60.00 price target, highlighting the company’s undervalued position in the private securities marketplace. Currently trading at $18.55, InvestingPro analysis confirms the stock is trading below its Fair Value, with analyst targets ranging from $18 to $60.

The research firm noted a disconnect between Forge’s current market capitalization of $252.12 million and what it sees as significant strategic value and long-term growth potential in a secular growth business. InvestingPro data shows the company maintains strong liquidity with a current ratio of 3.98, while achieving 14.78% revenue growth in the last twelve months.

Citizens believes Forge’s addressable market could support a business generating $100-200 million in EBITDA over the next five years, with greater potential as the market matures over the next decade.

The firm acknowledged that public markets have been challenging for smaller, unprofitable companies like Forge, suggesting that a potential sale could mitigate risks associated with macroeconomic shocks that might delay recovery.

Citizens also indicated that an acquisition could strengthen Forge’s intermediate-term outlook by connecting it with a better-capitalized partner or integrating it within a broader business, potentially addressing concerns about the company’s liquidity position if profitability remains elusive.

In other recent news, Forge Global Holdings Inc. reported a significant increase in revenue during its second-quarter earnings for fiscal year 2025. The company highlighted improvements in operational metrics, which were well-received by investors. Additionally, Forge Global is reportedly exploring a potential sale as it faces challenges with declining market value and dwindling cash reserves. The Financial Times noted that the company is working with Financial Technology Partners to evaluate its sale options, drawing interest from major financial institutions, including Morgan Stanley.

In further developments, Forge Global announced a new lease agreement for its headquarters at Four Embarcadero Center in San Francisco. The lease, set to commence on February 1, 2026, will cover approximately 21,795 rentable square feet and will last for five years and four months. Meanwhile, CEO Kelly Rodriques voluntarily forfeited 155,935 restricted stock units granted to him, with the company stating this move will help attract and retain key personnel.

JMP Securities reiterated its Market Outperform rating for Forge Global, maintaining a $60 price target. The firm noted an "inflection occurring as Forge matures and operating backdrop normalizes," following the company’s recent financial results. These developments underscore a period of strategic activity and financial performance for Forge Global.

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