What happened

There are few events that make an analyst more optimistic on a stock than a knockout quarter. That was the case Tuesday with the B2B e-commerce specialist Gigacloud Technology ,gct 14.30%,, The first prospect of a price-target hike by forecasters came a day after the company published a very encouraging earnings report. This boosted the share price by more than 14% on Wednesday.

So what

Raising his price target for China-based Gigacloud’s stock was analyst Matt Koranda. Shortly before the market opened, Koranda raised his fair value valuation on the shares to $16 per share, significantly higher than his previous estimate of $13. He also maintained his buy recommendation.

The reasoning behind Pundit’s latest change on GigaCloud was not immediately clear. It’s certainly no coincidence that this came less than 24 hours after the specialty-tech company released its second-quarter results.

After all, it managed to grow its revenue nearly 24% year over year to a little over $153 million. This was due to a 32% increase in gross merchandise volume (GMV) to approximately $608 million. Even better, the company more than quadrupled its net income during that period to $18 million, or $0.45 per share.

That was just short of the average analyst estimate for revenue of $136 million. For profitability, it was $0.25 per share.

now what

GigaCloud quoted its founder and CEO Larry Wu as saying, “Despite the challenging market environment for large parcel freight, our unique business model and technological advancements led us to achieve another quarter of exceptional operating and financial results Is.”

Management believes that more growth is on the way. It provided revenue guidance of $162 million to $167 million for its current (third) quarter. This range is significantly higher than the $124 million GigaCloud earned over the same period in 2022.

Eric Volkmann Do not have any position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has one Disclosure Policy,


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