Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Intellicheck Inc. (NASDAQ:IDN) received an upgrade in stock rating from Neutral to Buy by analysts at DA Davidson, accompanied by a significant increase in their price target from $3.00 to $5.50. The upgrade follows Intellicheck’s announcement of a new contract expansion with a Southeastern Regional Bank. The company, currently valued at approximately $78 million, has shown impressive momentum with a 37% price return over the past six months. InvestingPro data reveals several positive indicators, including strong liquidity and zero debt burden.
The expanded contract is notable for its low-seven-figure initial Annual Contract Value (ACV) and a total contract value (TCV) in the very high-seven-figures over a three-year period. This deal positions the bank as a top three customer for Intellicheck, where the benchmark to be within this top tier is approximately $2 million or more in annual revenue. With an exceptional gross profit margin of 91% and current revenue of $20.2 million, this expansion could significantly impact the company’s bottom line. Get deeper insights into Intellicheck’s financial metrics and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
Previously, the bank’s contract with Intellicheck was believed to be in the mid-six-figure range for ACV. With this expansion, additional contracted revenue is anticipated, estimated to be in the range of $1.3 to $1.5 million or more per year. The financial impact of this contract is expected to begin in Q3.
In response to the contract expansion, DA Davidson analysts have revised their growth estimates for Intellicheck for the calendar years 2025 and 2026 upwards by 2 and 6 percentage points, respectively. The analysts cited the new contract and its potential to significantly boost Intellicheck’s revenue as the primary reasons for the optimistic outlook and the decision to upgrade the stock rating to Buy. The raised price target of $5.50 reflects the firm’s increased confidence in the company’s growth trajectory. While currently unprofitable, InvestingPro analysis indicates analysts expect the company to turn profitable this year, with projected earnings per share of $0.02 for 2025.
In other recent news, Intellicheck Inc. reported its first-quarter 2025 financial results, revealing a revenue of $4.89 million, which surpassed analyst expectations of $4.78 million. However, the company’s earnings per share (EPS) fell short, posting a loss of $0.02 against the anticipated loss of $0.01. The company’s Software (ETR:SOWGn) as a Service (SaaS) revenue experienced a 6% year-over-year growth, although the retail sector saw a significant decline of 26% due to bankruptcies and decreased consumer confidence. Despite this, Intellicheck’s non-retail segment, which accounts for 58% of its revenue, increased by over 50% year-over-year.
DA Davidson recently raised Intellicheck’s stock price target from $2.50 to $3.00, maintaining a Neutral rating. The firm’s analyst, Rudy Kessinger, expressed cautious optimism, noting the potential impact of Intellicheck’s new Head of Sales, previously from Ping Identity. The company is also making strides in expanding into new markets such as banking and logistics, amidst challenges in the retail sector. Intellicheck’s strategic focus on diversifying its client base and enhancing digital authentication platforms is positioning it for potential growth.
Additionally, Intellicheck is progressing with its migration to Amazon (NASDAQ:AMZN) Web Services (AWS) to improve efficiency and client onboarding. The company is also actively working on finalizing significant deals, although uncertainties remain regarding their timing. These developments highlight Intellicheck’s ongoing efforts to adapt to market changes and expand its revenue streams.
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