Adam Hotchkiss, an analyst from Goldman Sachs, has initiated a new Hold rating on Via Transportation, Inc. Class A (VIA).
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Adam Hotchkiss has given his Hold rating due to a combination of factors influencing Via Transportation, Inc.’s current market position and future prospects. The company is recognized for its innovative technology platform that enhances the efficiency of public transit networks, offering significant potential for long-term growth. However, the complexity of local government procurement processes may slow down the pace of this transformation, despite the company’s strong data assets and potential for economies of scale.
While Via’s technology promises increased ridership and cost efficiency for municipalities, its business model and initial high operating costs are expected to keep profit margins low in the medium term, with free cash flow remaining negative until late 2026. The company’s valuation, at approximately 18 times 2026 EV/Gross Profit, suggests that its current market price already reflects its growth potential relative to its peers in the Vertical Software sector. Therefore, despite the promising long-term growth opportunities, the current financial outlook and valuation metrics justify a Hold rating.
Hotchkiss covers the Technology sector, focusing on stocks such as Guidewire, Onestream, Inc. Class A, and BlackLine. According to TipRanks, Hotchkiss has an average return of 8.0% and a 52.17% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $53.00 price target.