AvePoint (NASDAQ: AVPT) has experienced an impressive surge of over 50% in its stock value over the past month, fueled by its latest earnings report. The company’s Q1 earnings have played a pivotal role in unlocking its potential, leading to a remarkable rally in its shares.
Notably, Specialty SaaS provider is currently reaching a new 52-week high, a positive signal indicating its upward momentum. However, it is important to note that this achievement coincides with the broader market trend, as the S&P500 is also trading near all-time highs.
Throughout the last month, AVPT has demonstrated a wide trading range between $4.38 and $6.75, reflecting significant price volatility. Presently, the stock is trading near the higher end of this range.
Upon analyzing various time frames and trend lines, it becomes evident that a support zone ranging from $4.01 to $4.09 has formed, offering potential price stability. On the other hand, a resistance zone exists at $6.73, representing a price level that may pose challenges for further upward movement.
Recent trading activity has seen a notable increase in volume, although the price fluctuations have been considerable, making it difficult to pinpoint optimal entry and exit points. As a result, exercising caution and waiting for a period of consolidation might be a prudent approach.
The view on Wall Street
Considering the perspective of Wall Street analysts, six experts have provided a 1-year price target for AVPT stock, with projections ranging from a minimum of $5.50 to a maximum of $10. The average price prediction stands at $6.80, indicating a modest 1.19% increase from the current price.
Furthermore, an assessment based on the ratings of seven analysts evaluating AvePoint’s performance over the past three months reveals that five experts strongly recommend buying the stock, while two suggest holding it.
AvePoint’s overall business model and recent operational results have received favorable attention. However, it is essential to acknowledge that the substantial increase in valuation presents challenges for maintaining a bullish outlook.
The stock previously traded at a relatively low valuation of 2.3x enterprise value-to-sales (EV/Sales) during fall 2022 and spring 2023. Presently, it has risen to 4.4x EV/Sales, which, although not excessive, places it in a closer alignment with the pricing of slower-growing software companies in less glamorous sectors.
Regarding profitability, AvePoint’s management has set a target to achieve GAAP profitability by the end of 2025. This long-term goal demonstrates the company’s commitment to improving its financial performance. Previously, when priced around $4 per share, AvePoint appeared to offer a reasonable opportunity to gain exposure to the expanding Microsoft enterprise software market.
However, with the stock now trading near $7 per share, AvePoint must deliver substantial value to further satisfy shareholders’ expectations.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.