Global-E stock price target cut to $55 at Raymond James

Published 14/05/2025, 22:58
© Global-e PR

On Wednesday, Raymond (NSE:RYMD) James analyst Brian Peterson adjusted the price target for Global-E Online Ltd (NASDAQ:GLBE) to $55.00, down from the previous target of $60.00, while maintaining an Outperform rating on the company’s shares. The revision follows the first-quarter results of 2025, which demonstrated strong fundamental trends that surpassed recent market concerns, albeit with less upside than historical averages. According to InvestingPro data, the stock currently trades below its Fair Value, with analyst targets ranging from $37 to $66.

Global-E Online, a provider of cross-border e-commerce solutions, reported quarterly results that have not shown any consistent gross merchandise value (GMV) degradation, despite the broader market noise around macroeconomic factors and tariffs. The company maintains strong fundamentals with revenue growth of 32% and a healthy current ratio of 2.08, indicating solid liquidity. However, Peterson noted that the company’s decision to maintain its full-year outlook might be perceived as a challenging setup by investors, implying that potential risks have not been fully mitigated. InvestingPro analysis reveals 12 additional key insights about the company’s financial health and growth prospects.

The company also extended its agreement with Shopify (NASDAQ:SHOP), which has raised some questions about the potential impact on revenue and margins. Nevertheless, this was anticipated in the long-term framework that Global-E Online provided during its March analyst day. According to Peterson, the agreement should not alter the company’s long-term growth opportunity.

Despite the near-term volatility associated with the company’s take rate model, which is more significant than in other companies covered by Raymond James, Peterson believes that investors with a long-term perspective can benefit from owning shares of a company that is gaining market share and expanding its competitive moat. He suggests that looking beyond cyclical trends may be advantageous for investors interested in Global-E Online.

In other recent news, Global-e Online Ltd. reported impressive first quarter results for 2025, surpassing analysts’ expectations. The company recorded adjusted earnings of $31.6 million, a significant increase from the $21.3 million reported in the same period last year. Revenue grew by 30% year-over-year, reaching $189.9 million, bolstered by a 34% rise in gross merchandise value to $1.24 billion. Global-e reaffirmed its full-year guidance, projecting revenue between $917 million and $967 million, with adjusted EBITDA expected to range from $179 million to $199 million. Additionally, the company announced a renewed 3-year strategic partnership with Shopify, focusing on both managed markets and third-party solutions. Looking ahead to the second quarter of 2025, Global-e anticipates revenue between $204 million and $211 million, alongside adjusted EBITDA of $35 million to $39 million. These developments reflect the company’s robust growth trajectory amid challenging economic conditions.

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