Litchfield starts Marti Technologies stock with buy, $7 target

Published 14/04/2025, 12:45
Updated 29/04/2025, 21:01
Litchfield starts Marti Technologies stock with buy, $7 target

On Monday, Marti Technologies (NYSE:MRT), currently trading at $2.91, received a positive outlook from Litchfield Hills Research, as the firm initiated coverage with a Buy rating and a set price target of $7.00. According to InvestingPro data, the stock has shown strong momentum with a 16.4% gain in the past week and a remarkable 39.9% increase over six months, though investors should note the company’s weak financial health score. The new rating is based on a comparative analysis of the company’s growth rate and market valuation relative to its peers.

The research firm’s assessment indicates that Marti Technologies’ shares are trading below the level suggested by their discounted future earnings price target model. When compared to other companies within the same sector, Marti Technologies’ valuation appears to range from below average to average. While Litchfield Hills Research sees this as an inaccurate comparison due to Marti Technologies’ significantly faster growth rate, InvestingPro data reveals concerning fundamentals, including negative EBITDA of -$24.14M and projected revenue decline of 17% for the current year.

The analysts at Litchfield Hills Research argue that a more appropriate comparison would be with companies that share a similar growth trajectory. Under this lens, Marti Technologies’ shares are deemed to be valued substantially below average. The firm suggests that if Marti Technologies were to trade at the $7.00 price target, its Market Cap/Sales multiple would be around 4.3x. This figure would still position the company below the average market valuation, though investors should note the company’s concerning -9.99% gross profit margin. Get access to 12 additional key insights and comprehensive financial analysis with InvestingPro.

The analysis by Litchfield Hills Research underscores their belief in the potential for Marti Technologies’ market valuation to increase, provided it aligns with companies that have comparable growth rates. The establishment of the $7.00 price target reflects a confidence in the investment’s future performance and the possibility for the stock to correct upwards to a valuation that more accurately reflects its growth prospects.

In other recent news, Marti Technologies, Inc. has reported surpassing its March 31, 2025, targets by achieving 1.91 million riders and 290 thousand registered drivers as of March 25, 2025. The company experienced an 18.6% increase in riders and a 13.9% rise in registered drivers from December 15, 2024, to March 25, 2025. Marti has set new goals for June 30, 2025, aiming for 2.15 million riders and 310 thousand registered drivers. Additionally, Marti Technologies has extended its share repurchase program, authorizing the buyback of up to $2.5 million of its Class A ordinary shares at a ceiling price of $6.00 per share until October 9, 2025. This extension follows the initial program, which started on January 10, 2024, and had a previous price cap of $5.00 per share. The repurchase plan allows for transactions in privately negotiated deals or on the open market, subject to regulatory guidelines. The company’s management will decide the timing and volume of these buybacks based on several factors, including market conditions and strategic priorities.

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