Global-E Online stock rating reiterated at Buy by Needham

Investing.com - Needham has reiterated its Buy rating and $40.00 price target on Global-E Online Ltd (NASDAQ:GLBE), currently valued at $6.2 billion, following investor meetings with the company’s CFO Ofer Koren. According to InvestingPro data, analyst targets range from $32 to $64, with the stock currently trading near Fair Value levels.

The research firm stated that concerns about tariffs impacting Global-E’s business appear "overblown," as the company has not experienced any material impact to date, with gross merchandise value (GMV) levels remaining in line with prior expectations. This resilience is supported by the company’s strong financial position, with InvestingPro analysis showing a healthy current ratio of 2.57 and impressive revenue growth of 33.3% over the last twelve months.

Needham noted that changes in Global-E’s relationship with Shopify (SHOP) are not expected to affect win rates significantly, though it could potentially provide a modest positive impact through lower revenue sharing arrangements.

The firm expressed confidence that any minimal profitability headwinds from the "1P Managed Markets" relationship would be greatly exceeded by the GMV upside opportunity this initiative offers.

Needham also highlighted Global-E’s recently announced $200 million buyback program, suggesting it likely represents a repeatable capital allocation strategy for the company going forward.

In other recent news, Global-e Online Ltd. reported its financial results for the second quarter of 2025, revealing a notable discrepancy between earnings and revenue expectations. The company posted an earnings per share (EPS) of -$0.13, which fell significantly short of the anticipated $0.03, marking a -533.33% deviation from analyst forecasts. Despite this earnings miss, Global-e’s revenue surpassed expectations, reaching $214.9 million compared to the forecasted $207.87 million. Additionally, Global-e announced its first-ever share repurchase program, authorized by the board of directors, allowing for the buyback of up to $200 million in shares. This program will commence after a mandatory 30-day period for creditors to object, as required by Israeli regulations. The company intends to finance these repurchases using existing cash reserves and future operational cash flow. These developments highlight Global-e’s strategic financial maneuvers amidst mixed earnings results.

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