BofA update shows where active managers are putting money
Investing.com - H.C. Wainwright raised its price target on Inuvo (NYSE:INUV) to $15.00 from $2.00 on Monday, while maintaining a Buy rating on the artificial intelligence technology company’s stock. The new target falls within the broader analyst range of $10-$20, according to InvestingPro data, for this small-cap company currently valued at $63.62 million.
The significant price target increase follows Inuvo’s recent affirmation of its second-quarter 2025 revenue guidance, which projects growth of no less than 25.0%, aligning with InvestingPro’s full-year revenue growth forecast of 28%. H.C. Wainwright noted that with more than two-thirds of the quarter complete, management likely has "extremely high visibility" into these results. The company maintains impressive gross profit margins of 83.36%.
The research firm highlighted that Inuvo’s business typically experiences stronger seasonal performance in the second half of the year, suggesting that strong first-half results could lead to even better performance in the latter part of 2025. Despite some pressure on gross margins from recent customer campaigns, these larger campaigns are generating higher gross profit and driving operating leverage.
H.C. Wainwright expects Inuvo to deliver positive adjusted EBITDA and generate positive free cash flow during the second half of 2025. The company recently completed a 10-to-1 reverse share split, which the research firm believes will help attract institutional investors previously restricted from buying shares priced under $1.00.
The firm noted that Inuvo shares currently trade at just 0.6 times 2026 Street revenue estimates, which it considers undervalued given the company’s double-digit revenue growth and improving financial performance. This assessment aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued.
In other recent news, Inuvo Inc . reported significant financial results for the first quarter of 2025, showcasing a 57% increase in revenue year-over-year, reaching $26.7 million. The company also narrowed its net loss to $1.3 million from $2.1 million in the same quarter the previous year. Analysts had forecasted revenue of $23.75 million, but Inuvo surpassed these expectations, reflecting strong demand and innovative product offerings. Inuvo has recently launched an enhanced self-serve IntentKey platform, which has been well-received by clients, contributing to the company’s positive financial performance.
Additionally, Inuvo announced a 1-for-10 reverse stock split, which took effect on June 10, 2025. This change was executed to adjust the number of shares outstanding, but it did not alter any shareholder’s percentage interest in the company’s equity. The company is also planning to expand its workforce to 90 employees by the end of the year, focusing on hiring engineers and data science professionals to support growth. Looking ahead, Inuvo projects at least a 25% revenue growth for the second quarter of 2025, with plans to expand its platform and agency revenues at double-digit rates.
In other developments, the company is considering a 10-for-1 reverse stock split to optimize its capital structure. This move is unrelated to any listing requirements or capital-raising activities. Analysts from firms such as Alliance Global Partners (NYSE:GLP) have noted the company’s strong performance and expressed cautious optimism about future developments. As Inuvo continues to innovate and expand its digital advertising capabilities, it remains a company to watch for investors interested in the technology sector.
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