Gauzy stock price target lowered to $7 at TD Cowen on Q2 miss

Published 14/08/2025, 16:46
Gauzy stock price target lowered to $7 at TD Cowen on Q2 miss

Investing.com - TD Cowen has lowered its price target on Gauzy Ltd (NASDAQ:GAUZ) to $7.00 from $10.00 while maintaining a Hold rating following the company’s second-quarter earnings miss. The stock, currently trading at $6.12, has declined over 42% in the past six months, according to InvestingPro data.

The firm cited timing issues for the Q2 miss but noted that management has confirmed its 2025 guidance, shifting focus to the achievability of second-half targets. TD Cowen indicated that purchase order growth supports expectations for a stronger second half of the year. InvestingPro analysis reveals concerning metrics, including a current ratio of 0.66, indicating short-term obligations exceed liquid assets.

Despite reducing estimates to incorporate "added conservatism" after a challenging first half, TD Cowen continues to see attractive long-term fundamental attributes for Gauzy . The firm’s revised price target is based on 6x 2026 estimated EBITDA. The company’s EBITDA for the last twelve months stands at -$26.47 million, with revenue growth of 7.87% year-over-year.

The research note detailed reduced 2025 estimates following the softer Q2 results, though TD Cowen still assumes a significant revenue uplift and positive adjusted EBITDA in the second half. The firm’s 2026 estimated adjusted EBITDA was cut to $32 million from $40 million previously.

TD Cowen’s price target reduction also factored in updated balance sheet inputs, specifically citing higher net debt at the smart glass technology company.

In other recent news, Gauzy Ltd. reported significant developments involving its leadership and stock transactions. The company’s CEO and Co-Founder, Eyal Peso, along with director nominee Alejandro Weinstein, purchased a total of 560,000 ordinary shares in a private deal from an existing investor. This transaction, finalized in the first half of June 2025, was financed by Peso through a personal loan. Additionally, Gauzy has clarified that it currently has no plans to issue equity securities despite its recent filing of a Form F-3 shelf registration with the U.S. Securities and Exchange Commission. The company stated that this filing is a standard corporate practice to maintain financial flexibility for future opportunities. Furthermore, Alejandro Weinstein, a long-time investor with extensive managerial experience, is set to rejoin Gauzy’s Board of Directors starting November 1, 2025. These developments reflect a consolidation of leadership and strategic financial planning at Gauzy.

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