Analyst Vincent Colicchio of Barrington maintained a Buy rating on Asure, retaining the price target of $15.00.
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Vincent Colicchio has given his Buy rating due to a combination of factors that highlight Asure Software’s strategic positioning and growth potential. The company is focusing on the underserved small and midsize business sector within the Human Capital Management market, where it faces competition from larger players like ADP and Paychex. This focus, combined with favorable market conditions such as the shift to cloud software and the need for better human capital management in tight labor markets, positions Asure for growth.
Additionally, Asure’s strong backlog, which saw a significant year-over-year increase, and its potential for organic revenue growth through improved attach rates and cross-selling, contribute to a positive outlook. The recent acquisition of Lathem Time Corporation also offers cross-selling opportunities with minimal client overlap, enhancing Asure’s market reach. Furthermore, Asure’s payroll tax management platform targets a large market with limited competition, providing another avenue for revenue growth. Colicchio’s 12-month price target for Asure is set at $15, reflecting a valuation that is notably lower than the peer group average, suggesting potential upside for investors.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ASUR in relation to earlier this year.