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On Thursday, KeyBanc Capital Markets adjusted its outlook on Amplitude Inc (NASDAQ:AMPL), increasing the price target from $15.00 to $17.00 while sustaining an Overweight rating on the shares. According to InvestingPro data, the company maintains a healthy gross margin of 74.3% and has demonstrated revenue growth of 8.32% over the last twelve months. The firm’s analyst praised Amplitude for its revenue performance, highlighting that it continues to accelerate. The analyst’s statement emphasized the need for margin improvement alongside revenue growth, expressing a desire for significant progress in that area.
Amplitude’s fourth-quarter Annual Recurring Revenue (ARR) surpassed KeyBanc’s estimate by $2 million and the consensus by $6 million. The guidance for full-year revenue was particularly notable, with a midpoint of $327.8 million, which is significantly higher than both KeyBanc’s projection of $321.6 million and the consensus estimate of $320.3 million. This forecast suggests that Amplitude’s revenue acceleration will persist into the first half of 2025. While InvestingPro data shows the company isn’t currently profitable, analysts project profitability in 2025, with an EPS forecast of $0.06.
The analyst’s positive stance on Amplitude is based on the anticipation of continued revenue growth, which is a central component of their bullish thesis. Amplitude was identified as one of KeyBanc’s preferred stocks in the small-cap sector. However, the analyst also pointed out that while the top-line numbers are promising, there is a need for improvement in profit margins.
In response to these developments, KeyBanc has reiterated its Overweight rating on Amplitude stock. The firm remains firm in its conviction that Amplitude stands out as a top choice within the realm of small-cap investments. The new price target of $17.00 reflects KeyBanc’s confidence in the company’s growth trajectory and potential for further stock appreciation.
In other recent news, Amplitude Inc. reported strong fourth-quarter 2024 earnings, with earnings per share of $0.02, surpassing the forecast of $0.01, and revenue reaching $78.1 million, exceeding expectations by $1.54 million. The company also announced an optimistic revenue guidance for 2025, projecting growth between $325 million and $331 million. Analyst firms Baird and DA Davidson have both upgraded Amplitude’s stock rating, with Baird raising it to "Outperform" and DA Davidson to "Buy," reflecting confidence in the company’s performance and future prospects. Baird increased its price target to $17, while DA Davidson set theirs at $16, citing Amplitude’s strong enterprise momentum and strategic investments.
Amplitude’s recent earnings call highlighted the company’s focus on expanding its enterprise market and integrating AI technologies. The company reported a 9% year-over-year revenue increase for Q4 2024 and an annual recurring revenue of $312 million. Amplitude’s strategic initiatives, including enhancements to its platform and go-to-market approach, are expected to drive further growth. The company is also planning to launch an AI agent product in the second half of 2025 to expand its platform capabilities. These developments indicate a positive outlook for Amplitude as it continues to strengthen its position within the enterprise sector.
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