Reversal off oversold conditions ahead of May 30 financialsECOM is staging a strong comeback from oversold area ahead of what are expected to be strong financials next Monday, May 30th. Bullish MACD cross (technical buy signal). Bullish Engulfing candle and a move above EMA 9 for the first time since April 1st. Trading at significant discount to peers. Q4 2021 saw $14.9M in revenue, adjusted EBITDA of $1.4M, cash flow from operations of $2M. 2021 annual revenue: $34.8M. Market cap: $28M.
CEO's Twitter post appears to suggest we can expect solid numbers next week:
"No secret, it's been a brutal market, especially for tech stocks. Some warranted, and some unwarranted.
We report Q1 results on Monday. It will be our first full Q with all acquisitions included. Another chance for shareholders to judge our performance..."
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Analyst price target: $1
"(Raymond James) is now calling for EMERGE to hit full 2022 revenue and adjusted EBITDA of $64 million (unchanged) and $7 million (unchanged), respectively, and for 2023 revenue and EBITDA of $72 million (unchanged) and $8 million (previously $10 million), respectively.
With the update, Li has reiterated his “Outperform 2” rating for ECOM while lowering his target price from $2.25 to $1.00 per share, which at press time represented a projected one-year return of 127.3 per cent.
“With e-commerce peer valuations down substantially in the last three months (down by ~20 per cent on average), we have lowered our target multiple to 2.0x (from 2.5x) NTM revenues, still at a discount to other e-commerce companies. Our target moves lower to $1.00 based on 2.0x NTM revenues"
