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Investing.com - Truist Securities has reiterated its Buy rating and $8.00 price target on Riskified Ltd. (NYSE:RSKD) following the company’s second-quarter results. According to InvestingPro data, the stock is currently trading below its Fair Value, with analysts setting targets between $4.50 and $8.00.
The fraud prevention company reported solid second-quarter performance with revenue, EBITDA, and cash flow exceeding analyst expectations. With revenue growth of 8% year-over-year and a robust gross profit margin of 50%, the company maintains a "GOOD" overall financial health score on InvestingPro. Truist highlighted several positive factors including resilient consumer spending, a strong sales pipeline for the second half of the year, and a 100% renewal rate for large contracts.
Riskified has increased its total revenue outlook at the midpoint while maintaining its adjusted EBITDA guidance, which Truist attributes to a conservative approach. The company also demonstrated continued product innovation, new product launches, and multi-product customer wins.
Truist noted Riskified’s progress in vertical diversification and significant international growth. The firm expressed confidence that double-digit growth would return in 2026.
The investment firm recommends aggressive buying on any weakness related to lower first-half gross margin performance and projected low-single-digit third-quarter revenue growth, pointing to Riskified’s valuation at 1x EV/2026 estimated sales, 9x EBITDA, and more than $2 per share in cash. The company maintains a strong balance sheet with a current ratio of 6.24 and minimal debt-to-equity of 0.08, supporting its financial stability.
In other recent news, Riskified Ltd. reported its second-quarter 2025 earnings, surpassing revenue expectations with $81.1 million against a forecast of $79.99 million. The company also reported an earnings per share (EPS) of $0.02, significantly beating the projected EPS of -$0.06. Despite these positive earnings results, multiple analyst firms adjusted their price targets for Riskified. UBS lowered its price target to $5.00, citing concerns over margins, even though the company exceeded expectations for gross merchandise volume, revenue, and EBITDA. Similarly, Keefe, Bruyette & Woods reduced their target to $5.25, noting higher GMV growth but lower gross margins. DA Davidson also adjusted its price target to $6.00, maintaining a Buy rating while expressing concerns over flat full-year revenue guidance. These developments reflect a mixed reaction to Riskified’s financial performance and future outlook.
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