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On Wednesday, JPMorgan analyst Michael Cho initiated coverage on Forge Global Holdings Inc (NYSE:FRGE) with a Neutral rating and a price target of $18.00. The stock, currently trading at $17.79, has shown remarkable momentum with a 32.7% gain in the past week alone. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value. Cho highlighted that despite uncertain market conditions, Forge Global is advancing its strategic goals, including expanding through partnerships and a potential acquisition. Cho’s analysis pointed out that Forge’s business is currently highly dependent on the quarterly transaction volumes on its platform.
Forge Global reported its first-quarter adjusted EBITDA at a loss of $8.9 million, which was within the higher range of its preliminary announcement in April. The company’s revenues for the first quarter were $25.1 million, a 37% increase from the previous quarter, marking the strongest quarter since 2021, bolstered by increased transaction volumes on the Forge platform. InvestingPro data reveals the company maintains a strong liquidity position with a current ratio of 5.01, though it’s currently burning through cash at a notable rate. Get access to 10+ additional exclusive ProTips and comprehensive financial metrics with InvestingPro.
However, Cho anticipates a decrease in transaction volumes and revenues in the second quarter of 2025, as early indicators suggest a less vigorous start due to ongoing macroeconomic uncertainties. Forge management also observed some weakening in buyside demand at the beginning of the quarter.
In addition to these financial insights, Cho mentioned Forge’s recent moves to grow its data business, including a partnership with Yahoo and a distribution agreement with ICE. Furthermore, Forge has expressed its intention to acquire Accuidity, signaling its continued commitment to diversifying and strengthening its business amidst a fluctuating market. With a beta of 2.27, Forge’s stock typically experiences higher volatility than the broader market. Dive deeper into Forge Global’s strategic positioning and growth potential with the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Forge Global Holdings Inc reported a strong first quarter for 2025, with revenue reaching $25.3 million, marking a 36% increase from the previous quarter. The company’s marketplace revenue surged by 85%, driven by a 132% increase in trading volume. Despite a net loss of $16.2 million, Forge Global’s adjusted EBITDA loss improved to $8.9 million from $10.9 million in the prior quarter. Piper Sandler upgraded Forge Global’s stock rating from Neutral to Overweight, citing the company’s valuation and growth potential in the private markets sector. The firm maintained a price target of $30.00, reflecting optimism about Forge Global’s future performance. Citizens JMP also reaffirmed a Market Outperform rating with a $60.00 price target, highlighting the company’s strategic initiatives and cost efficiency. Forge Global has been actively pursuing partnerships and acquisitions to enhance its private market ecosystem, including a collaboration with Yahoo Finance and an agreement with Intercontinental Exchange (NYSE:ICE). These strategic moves are expected to bolster Forge Global’s position and attract more investors to its platform.
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