Analyst Gary Prestopino of Barrington maintained a Buy rating on Cantaloupe (CTLP – Research Report), with a price target of $10.00.
Gary Prestopino has given his Buy rating due to a combination of factors, including Cantaloupe’s solid financial performance and promising guidance. His analysis suggests that the company’s fourth-quarter financial results should at least meet consensus expectations, which projects a positive outlook. This anticipation is supported by the company’s strong finish in the third quarter, where it surpassed consensus expectations in adjusted EBITDA. Additionally, Cantaloupe has demonstrated an improvement in profitability throughout the fiscal year, with transaction revenue outperforming and subscription revenue expected to be the fastest-growing segment with high gross margins.
Moreover, Prestopino’s confidence in Cantaloupe is further bolstered by the company’s long-term guidance. The company has outlined an ambitious growth trajectory, expecting at least 15% annual revenue growth through FY26 and aiming for 20% adjusted EBITDA margins in the latter half of FY26. The robust pipeline of international opportunities, particularly in EMEA and Mexico, also contributes to the positive outlook. Based on these factors, Prestopino has set a price target of $10, indicating a significant potential upside from the current price, which justifies the Outperform rating for Cantaloupe’s stock.
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Cantaloupe (CTLP) Company Description:
USA Technologies, Inc. engages in the provision of technology-enabled solutions and value-added services that facilitate electronic payment transactions. It offers Internet of Things (IoT) and machine-to-machine (M2M) services, which include the ability to remotely monitor, control, and report on the results of distributed assets containing the electronic payment solutions. The company was founded by George Raymond Jensen Jr. in January 1992 and is headquartered in Malvern, PA.
