Analyst Allen Klee of Maxim Group reiterated a Buy rating on Ryde Group Limited Class A (RYDE – Research Report), reducing the price target to $0.60.
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Allen Klee has given his Buy rating due to a combination of factors that highlight Ryde Group Limited’s potential for growth despite current challenges. The company reported a revenue increase in the second half of 2024, surpassing expectations, which was driven by successful promotions and pricing strategies aimed at increasing driver supply. Although gross margins and adjusted EBITDA fell short of projections due to higher expenses, the company’s lean operating structure is expected to help narrow losses over time.
Additionally, Ryde’s geographical expansion and new service offerings present significant opportunities for future growth. Despite the need for additional capital to fund operations in the latter half of 2025, the company’s current cash position and lack of debt provide a solid foundation. The stock is trading at a low enterprise value to revenue multiple, and Klee’s discounted cash flow analysis supports a 12-month price target of $0.60, reflecting confidence in Ryde’s long-term prospects.
RYDE’s price has also changed dramatically for the past six months – from $0.589 to $0.230, which is a -60.95% drop .