According to recent reports, Global E Online Ltd (NASDAQ:GLBE) appears to have great long-term potential, with several prominent analysts bullish on its future growth prospects.
Needham analyst Scott Berg has reiterated a Buy rating on GLBE and maintained a $44 price target. Berg was impressed with the performance of the company in Q1, which exceeded expectations due to strong consumer spending trends despite the current macroeconomic climate. Moreover, Y/Y growth in Gross Merchandise Value (GMV) of 54% demonstrated the success of GLBE’s value proposition, with new customers and expansions driving near-term revenue visibility. Furthermore, he was impressed with the company’s ability to achieve 800bps of adjusted EBITDA leverage Y/Y to 12.3% while at the same time growing revenues at a greater than 50% rate.
Raymond James analyst Brian Peterson also maintains an Outperform rating on GLBE, raising the price target from $35 to $40. Peterson cited GMV trends (+55%) during the first quarter, which exceeded his expectations and encouraged ongoing customer expansion activity, including major brands like Walt Disney Co and LVMH Moët Hennessy Louis Vuitton. Additional catalysts from the Shopify partnership and BorderFree synergies should also ramp up in 2024.
JMP Securities analyst Patrick Walravens reiterated Global E Online with a Market Outperform and maintains a $46 price target. The analyst views Global-e as offering excellent long-term capital appreciation potential, with strong demand tailwinds from merchants seeking to capitalize on cross-border commerce opportunities. The company is addressing a large target addressable market, estimated at approximately $125 billion. Moreover, Shopify’s launch of Markets Pro this summer and the leadership team at Global-e, including CEO Amir Schlachet, who co-founded the business in 2013, President Nir Debbi, another co-founder, and CFO Ofer Koren, adds to the upbeat outlook.
Despite an impressive 68% YTD increase, these analysts still believe that GLBE represents one of the most compelling growth stories in their coverage universe. However, macro consumer spending behavior continues to cloud Global-e’s near-term investor outlook, with shares trading lower by 6.90% at $32.53 on the last check Tuesday.
