Morgan Stanley lifts Global-E stock to Overweight, cuts target

Published 26/03/2025, 08:14
© Rotem Barak, Global-e PR

On Wednesday, Morgan Stanley (NYSE:MS) analysts upgraded Global-E Online Ltd (NASDAQ:GLBE) from Equalweight to Overweight, despite reducing the price target to $46.00 from $55.00. The adjustment follows the company’s recent Investor Day, which provided new insights into its business operations and market strategy. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from $48 to $66, suggesting significant upside potential from current levels.

Analysts at Morgan Stanley expressed a positive outlook on Global-E Online’s future, citing the company’s conservative guidance post-Investor Day as a factor that has de-risked estimates and sentiment. The firm’s guidance is now seen as likely conservative, especially considering the potential benefits from the current trade policy environment. This optimism is supported by InvestingPro data showing impressive revenue growth of 32.08% in the last twelve months, with analysts forecasting continued sales growth of 25% for the current year.

Global-E Online, which specializes in cross-border e-commerce solutions, is believed to be well-positioned due to its strategic relationship with Shopify (NYSE:SHOP)’s Managed Markets and its multi-local approach. Morgan Stanley’s revised price target of $46.00 is based on approximately 30 times the firm’s projected 2026 adjusted EBITDA. The company maintains a strong financial position with a healthy current ratio of 2.08 and more cash than debt on its balance sheet, as highlighted in InvestingPro’s comprehensive analysis (available with 10+ additional ProTips).

The analysts highlighted the company’s trajectory towards GAAP profitability and its mid-20’s revenue growth rate as key drivers for the stock’s potential ascent. They also noted that Global-E’s stock multiple is undemanding, which could lead to earnings growth outpacing expectations that have been reset to a more achievable level.

In conclusion, Morgan Stanley’s stance on Global-E Online reflects a belief in the company’s ability to surpass conservative earnings expectations and capitalize on its strategic initiatives. The upgrade to Overweight signifies confidence in the stock’s potential to leverage earnings growth and adjust to the evolving trade policy landscape.

In other recent news, Global-E Online Ltd has been the focus of several analyst reports following their earnings announcements and strategic updates. Benchmark analysts adjusted their price target for Global-E Online to $61 from a previous $64, maintaining a Buy rating, citing ongoing consumer demand and tariff-related uncertainties. Despite these challenges, the company confirmed its first-quarter and full-year 2025 revenue guidance, indicating stability in their gross merchandise value and revenue projections. Needham reaffirmed a $64 price target, optimistic about Global-E’s growth potential, particularly through its multi-local offering and strategic partnerships, which are expected to drive significant growth by 2025.

Citizens JMP also maintained a $64 target, praising Global-E’s leadership and market position, and projecting a 25% revenue growth in 2025. UBS revised its price target to $64 from $68, noting concerns over tariff impacts on the company’s take rate, but still maintaining a Buy rating. Benchmark’s Mark Zgutowicz reduced the price target to $64 from $68, while highlighting strong fourth-quarter results and promising fiscal year 2025 prospects due to new product launches. These recent developments reflect a mix of cautious optimism from analysts, who continue to see potential in Global-E’s strategic initiatives and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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