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On Monday, Piper Sandler analyst Richard Repetto upgraded Forge Global Holdings Inc (NYSE: FRGE) stock rating from Neutral to Overweight, maintaining a price target of $30.00. The upgrade reflects a positive outlook on the company’s valuation and the growing momentum within the private markets sector. According to InvestingPro data, the stock has shown significant momentum with a 15% return over the last week and is currently trading at $14.50.
Forge Global, a prominent player in private market trading and data, has seen its stock price decrease by 94% since its public debut in March 2022. Despite not having reported a positive adjusted EBITDA quarter since 2021 and recently undergoing a 1:15 reverse stock split, Piper Sandler believes that the current stock price does not reflect the company’s true value. According to Repetto, Forge Global is trading at just 1.4 times its projected 2026 sales and 1.9 times its end-of-first-quarter 2025 cash value, with virtually no debt on its books. InvestingPro analysis confirms the company’s strong balance sheet, with a current ratio of 5.01 and minimal debt-to-equity ratio of 0.03. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro.
The $30.00 price target set by Piper Sandler remains unchanged and is equivalent to $2.00 per share before the reverse stock split. This target is based on approximately three times the firm’s estimated revenue for 2026. The analysis suggests that Forge Global’s shares are significantly undervalued, especially when compared to its larger-cap, high-growth financial technology peers, which trade at a substantial premium. InvestingPro’s Fair Value assessment also indicates the stock is currently undervalued, with revenue growing at 16% over the last twelve months.
Repetto’s commentary highlights the company’s position as one of the leading brands in an industry poised for substantial growth. The private market trading and data sector is starting from a relatively small base, which could lead to significant expansion in the years ahead.
Forge Global’s current valuation, according to Piper Sandler’s assessment, presents an attractive entry point for investors. The firm’s analysis indicates that the worst may be over for Forge Global’s stock, positioning it for potential growth as the private markets continue to gain traction.
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 significant increase in trading volume. Despite reporting 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. Citizens JMP reaffirmed its Market Outperform rating for Forge Global, maintaining a price target of $60.00, expressing confidence in the company’s strategic initiatives and cost efficiency measures. Analysts at Citizens JMP noted the company’s potential to outperform the broader market, emphasizing management’s confidence in meeting consensus estimates for the second quarter. Additionally, Forge Global announced strategic partnerships and an acquisition to enhance its private market ecosystem, aiming for EBITDA breakeven by 2026. The company’s focus on reducing cash burn in 2025 and expanding private market capabilities has been well-received by analysts and investors alike.
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