Analysts Recommend Buying Grid Dynamics Holdings Now

2

Grid Dynamics is a hi-tech company. It offers digital transformation services, including technology engineering, solving legacy re-platforming problems, and moving to the cloud. The company is headquartered in Silicon Valley, but it has a global customer base.

 

Grid Dynamics went public on the NASDAQ index in March of 2020 through a merger with ChaSerg Technology Acquisition Corporation, a special purpose acquisition company. At the time of the transaction, the stock had a market cap of $660 million. However, it dropped down sharply in the early days of its trading due to coronavirus’ impact on the economy and stock markets at that time. Since then, Grid Dynamics’ shares have surged forward, though. The stock jumped by more than 120% from its March trough.

 

Despite that, the company still feels the Covid-19 impact. The third quarter’s revenues were up 18% sequentially from the second quarter, but the reported $26.33 million was still lower than Q1 results. Nonetheless, the company saw strong revenue growth in its non-retail industry, as well as technology verticals.

 

Furthermore, it experienced a notable insider move when Victoria Livshitz, EVP of Customer Success, purchased 126,000 shares in December 2020. She has a holding in Grid Dynamics worth $10.65 million now.

 

Analyst Joseph Vafi about Grid Dynamics

 

Canaccord’s analyst Joseph Vafi found Grid’s forward prospects impressive. According to him, the Grid customer set will be more robust versus pre-pandemic. Strong spend on digital transformation by growing, healthy customers in CPG and TMT will boost it.

 

Vafi rated Grid Dynamics as a Strong Buy. He set his price target at $15. At current levels, the analyst’s target implies an upside potential of 21% over the year.

 

It seems Wall Street agrees with Vafi. According to four ratings published in the past few weeks, this stock is a Strong Buy. Still, the stock’s average price target is $12.75, and it suggests a modest 3% gain, along with a change from the current share price.

  • Support
  • Platform
  • Spread
  • Trading Instrument

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.

View original post