Intellicheck stock target raised to $3 by DA Davidson

Published 14/05/2025, 09:54
Intellicheck stock target raised to $3 by DA Davidson

On Wednesday, DA Davidson made an adjustment to the financial outlook for Intellicheck Inc. (NASDAQ:IDN), increasing the price target from $2.50 to $3.00, while keeping a Neutral rating on the company’s shares. This decision follows Intellicheck’s first-quarter results, which showed a slight outperformance in revenue and EBITDA compared to consensus estimates. According to InvestingPro data, the stock appears slightly overvalued at current levels, despite showing strong momentum with a 13% gain over the past week and 25% over the last six months.

The company’s Software (ETR:SOWGn) as a Service (SaaS) revenue grew by 6% year-over-year, aligning with the overall revenue growth of 5.77%, though showing a slowdown from the 17% year-over-year growth observed in the previous quarter. The retail sector, which accounts for approximately 42% of Intellicheck’s revenue, experienced a 26% decline year-over-year. This downturn was attributed to bankruptcies and a general decline in consumer confidence and spending. Notable strengths include an impressive gross profit margin of 91% and strong liquidity, with a current ratio of 3.11 indicating robust short-term financial health.

In contrast, Intellicheck’s non-retail segment, comprising around 58% of the company’s revenue, saw an increase of over 50% year-over-year. The report mentioned that several large deals are nearing completion, although there is considerable uncertainty regarding their timing.

The appointment of a new Head of Sales, who previously worked at Ping Identity with over $800 million in Annual Recurring Revenue (ARR), was highlighted as a potential positive development for Intellicheck. However, DA Davidson’s analyst Rudy Kessinger noted the need for greater clarity on the retail sector’s trajectory and visibility into large new deals that could generate revenue before adopting a more bullish stance.

Kessinger’s comments reflected a cautious optimism about Intellicheck’s future performance, emphasizing the potential for the new Head of Sales to act as a catalyst for growth. Nonetheless, the firm’s current stance remains neutral, awaiting more concrete signs of progress in the company’s retail segment and the finalization of significant deals. InvestingPro analysis reveals additional insights about Intellicheck’s financial health, with several more key metrics and tips available to subscribers. Access the comprehensive Pro Research Report for a deep dive into what really matters for this $59.45M market cap company.

In other recent news, Intellicheck reported its first quarter 2025 financial results, revealing mixed outcomes. The company achieved a revenue of $4.89 million, which exceeded analyst expectations of $4.78 million, marking a 5% year-over-year increase. However, the earnings per share (EPS) came in at a loss of $0.02, slightly missing the forecasted loss of $0.01. Intellicheck’s SaaS revenue, a significant contributor, grew by 6% year-over-year to $4.87 million. The company also reported a marginal loss in adjusted EBITDA, indicating near breakeven operations.

Intellicheck is actively expanding into new sectors, such as banking and logistics, despite facing challenges in the retail sector where revenue decreased by 26% year-over-year. The company is making strategic moves, including migrating clients to AWS, which is expected to enhance cash flow in 2025. The firm’s leadership anticipates growth in the background check and enterprise markets, with expectations of positive EPS in future quarters. Additionally, Intellicheck has appointed Tim Poulin as the Senior Vice President of Sales, bringing extensive sales leadership experience to drive revenue growth.

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