Needham raises Global-E Online price target to $64

Published 19/02/2025, 19:16
© Rotem Barak, Global-e PR

On Wednesday, Needham analyst Scott Berg increased the price target for Global-E Online Ltd (NASDAQ:GLBE) shares from $55.00 to $64.00, while reiterating a Buy rating on the stock. According to InvestingPro data, analysts maintain a strong bullish consensus on GLBE, with price targets ranging from $55 to $68. The adjustment follows Global-E Online’s release of its fourth-quarter results, which Berg described as one of the company’s strongest performances in recent times.

Global-E Online reported a notable 42% increase in top-line growth and a 44% rise in Gross Merchandise Value (GMV) for the quarter. The company achieved an adjusted EBITDA margin exceeding 20% for the first time, while maintaining a healthy current ratio of 2.18 and strong gross profit margin of 44%. Despite these positive results, Global-E Online’s stock experienced a decline on Wednesday due to its 2025 revenue and GMV projections falling slightly short of Wall Street expectations.

The company’s guidance was affected by several factors, including normalizing consumer demand and potential impacts from tariffs. Additionally, the analyst pointed to a modestly lower take rate in 2025, attributed to the Ted Baker contract, as a minor negative influence on the guidance.

Nevertheless, Needham’s analyst expressed confidence in Global-E Online’s long-term prospects, highlighting the company’s forecast for 30% GMV growth and the achievement of GAAP profitability by 2025. InvestingPro analysis reveals several positive indicators, including strong revenue growth of 28.76% and a solid financial health score. The platform has identified 13 additional valuable insights for GLBE, available through an InvestingPro subscription. Berg emphasized the company’s strong value proposition and suggested that the introduction of tariffs and other complexities might ultimately benefit Global-E Online’s platform.

In other recent news, Global-E Online Ltd reported its fourth-quarter 2024 earnings, revealing a 42% increase in revenue year-over-year, reaching $263 million. The company’s earnings per share (EPS) matched analyst expectations at $0.01, marking its first quarter of GAAP profitability. Despite these positive financial results, the company experienced a 10.12% decline in stock value, attributed to concerns about future challenges in the cross-border e-commerce sector. For 2025, Global-E projects revenue growth between $917 million and $967 million, a 25% increase, and anticipates its first full year of GAAP profitability. The company is also expanding into consumer electronics through new partnerships, including one with Logitech (NASDAQ:LOGI). Analysts have noted that Global-E’s performance aligns with its historical trend of strong revenue growth, supported by strategic initiatives. As part of its ongoing strategy, Global-E is focusing on enhancing merchant experience and expanding its market presence with Shopify (NYSE:SHOP).

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