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Investing.com - UBS maintained its Buy rating and $52.00 price target on Global-E Online Ltd (NASDAQ:GLBE) on Thursday, following analysis of the company’s recently revised partnership with Shopify (NASDAQ:SHOP). The stock, currently trading at $32.85, shows significant upside potential according to InvestingPro data, which reveals strong revenue growth of 33.2% in the last twelve months.
The firm’s assessment comes after Global-E announced a new strategic partnership agreement with Shopify last month, which has become a central topic in investor discussions since the announcement. With a market capitalization of $5.57 billion and a FAIR financial health score according to InvestingPro, the company appears well-positioned to execute on this partnership.
UBS provided an updated analysis of Global-E’s business from Shopify merchants, offering detailed thoughts on the implications of the changes in their relationship and commercial terms under the new agreement.
The research includes a comprehensive bridge to Shopify’s 2025-2028 targets reflecting the new agreement, along with background information on the partnership and Shopify’s ownership of Global-E shares.
UBS’s report also covers financial mechanics and details around both the direct integration (3P) and Managed Markets (1P) business aspects of the partnership.
In other recent news, Global-E Online Ltd reported its first-quarter earnings, showcasing a revenue of $190 million, which marks a 30% increase year-over-year and slightly exceeds the consensus estimate of $188 million. The company also achieved an adjusted EBITDA of $31.6 million, surpassing the forecast of $31.3 million, with a non-GAAP gross margin of 46.6%. Despite these positive figures, the growth rate showed a deceleration compared to the previous quarter. Analysts from JMP maintained their Market Outperform rating with a $64 price target, while Raymond (NSE:RYMD) James adjusted their price target to $55, citing strong fundamentals but acknowledging some market concerns. Benchmark also revised its price target to $52 from $55, maintaining a Buy rating, and highlighted the significance of Global-E’s new agreement with Shopify. UBS reiterated a Buy rating with a $52 target, noting the company’s business recovery and strategic moves with Shopify. Needham maintained a Buy rating with a $40 target, expressing cautious optimism about the revised Shopify partnership. These developments reflect Global-E’s strategic efforts to strengthen its market position amidst a challenging economic environment.
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