Analyst Allen Klee from Maxim Group reiterated a Buy rating on Innodata (INOD – Research Report) and keeping the price target at $75.00.
Allen Klee has given his Buy rating due to a combination of factors that highlight Innodata’s strong performance and growth potential. The company reported impressive first-quarter results for 2025, with a significant year-over-year increase in revenue and adjusted EBITDA, both surpassing expectations. This growth is attributed to successful expansion with new and existing customers, particularly in the areas of safety and testing, which are expected to generate recurring revenue.
Innodata is poised to benefit from the increasing demand for data engineering services, especially in the development and maintenance of large language models (LLMs) and generative AI. The company’s strategic wins with major tech companies and its largest customer, whose new business line has a budget exceeding their current sales, further bolster its growth outlook. With a strong cash position, no debt, and an untapped credit line, Innodata is well-positioned to fund its organic growth. The reiterated revenue guidance and expected industry tailwinds in AI spending support the Buy rating, despite some anticipated short-term revenue fluctuations.
In another report released yesterday, BWS Financial also maintained a Buy rating on the stock with a $74.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of INOD in relation to earlier this year.