Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Cellebrite shares target raised on subscription platform potential

Published 24/05/2024, 07:22 am
© Shlomi Yosef, Cellebrite PR
CLBT
-

On Thursday, JPMorgan (NYSE:JPM) updated its outlook on Cellebrite (NASDAQ:CLBT), a digital intelligence company, increasing the price target to $14.00 from the previous $12.00 while maintaining an Overweight rating. The firm highlighted Cellebrite's solid quarterly performance, noting a 27% year-over-year growth in Annual Recurring Revenue (ARR), which aligned with consensus expectations.

Cellebrite is currently transitioning its customer base to an upgraded subscription platform named Inseyets. This shift is expected to span over the next three years, with an anticipated acceleration in the second half of the year and into 2025. JPMorgan anticipates that this move to a subscription model could provide a significant pricing uplift of 20-25%, a trend consistent with other companies in the sector that have undergone similar transitions.

The platform's traction is reportedly strong, as evidenced by a net dollar retention rate that has remained steady at 125% since the last quarter. Looking forward to FY25, the firm suggests that Cellebrite's government business could see additional growth if the company secures FedRAMP certification in time for the FY25 federal budget cycle.

InvestingPro Insights

In line with the positive sentiment from JPMorgan, InvestingPro data and tips further illuminate Cellebrite's financial landscape. The company's market capitalization stands at a robust $2.44 billion, and although it currently trades with a negative P/E ratio, the high gross profit margin of 87.33% for the last twelve months as of Q4 2023 signifies strong profitability potential once it overcomes its growth-stage expenses. This is further supported by a remarkable year-over-year revenue growth of 24.98%.

Two InvestingPro Tips that investors may find particularly relevant are the company's impressive gross profit margins and the fact that analysts predict Cellebrite will be profitable this year. These insights suggest that Cellebrite's financial health is likely to improve, making it an intriguing prospect for those seeking growth opportunities. Additionally, with a substantial 110.33% one-year price total return, Cellebrite has demonstrated significant market confidence, which may be enticing for potential investors.

For readers interested in more detailed analysis, there are 14 additional InvestingPro Tips available for Cellebrite, which can be accessed with an exclusive offer. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a deeper dive into the company's financial metrics and future projections.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.