Boy Wirat
Digital watermarking company Digimarc (NASDAQ:DMRC) rose after investment firm Needham upgraded the stock, citing expected strong recurring revenue growth.
The stock was trading ~9.49% higher Monday noon at $28.73.
Needham analyst Joshua Reilly took over the company’s coverage, and raised his recommendation on the stock to Buy from Hold. The price target is of $40.
DMRC has “developed a unique platform based on its historical leadership in watermarking technologies,” and offers a compelling ROI for its customers. The company’s annual recurring revenue is expected to show strong growth in the coming five years.
The company’s relationship with Walmart, its Recycle platform in Europe, and “attractive unit economics” are also seen as positives.
The average sell-side analyst rating on the stock is Hold, with two analysts grading the stock as Hold in the last 90 days.
Seeking Alpha’s Quant Rating system also rates DMRC as Hold, with a score of 3.19 on a scale of 5. The stock gets a B+ for valuation, C- for Growth, D- for Profitability, C- for Momentum and A+ for Revisions.