Gorilla initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald initiated coverage of Gorilla with an Overweight rating and $4.80 price target. The risk-reward on shares of Gorilla is attractive, particularly after the company announced a three-year, $270M contract win with the government of Egypt, which could be the first of many similar sized, if not larger, contract wins that Gorilla could receive over the coming years, the analyst tells investors in a research note. The contract will generate nearly 4x Gorilla’s 2022 revenue, but also could open up capital markets, giving Gorilla the ability to raise debt and/or equity so that it can reinvest in its business to drive long-term sustainable growth, the firm argues.