Maxim Group analyst Jack Vander Aarde has reiterated their bullish stance on BOXL stock, giving a Buy rating on May 9.
Jack Vander Aarde has given his Buy rating due to a combination of factors, including Boxlight’s first quarter results for 2024, which surpassed expectations. The company reported $37.1 million in revenue, a 10% year-over-year decrease, yet this figure beat both consensus estimates and the company’s own guidance. Moreover, Boxlight achieved a positive adjusted EBITDA, which was a significant improvement over the anticipated losses. This better-than-expected performance indicates the company’s resilience despite industry softness and suggests potential for future growth. Vander Aarde also notes the company’s new leadership, appointed in January 2024, is concentrating on improving operational results through margin expansion and disciplined expense management, which could lead to increased market share capture in the coming year.
Furthermore, Vander Aarde’s outlook is buoyed by management’s guidance for the second quarter of 2024, which projects revenue and adjusted EBITDA figures that signify a stronger performance in the latter half of the year. Despite not providing formal annual guidance, management expectations of stable year-over-year revenue and relatively high gross margins are promising signs. Additionally, Boxlight has made significant operating cost reductions, the benefits of which are expected to materialize in subsequent quarters. With a healthy balance sheet and liquidity levels, as well as expectations for continued positive free cash flow, Vander Aarde sees no need for additional capital beyond a minor bridge loan, supporting the Buy rating despite lowering the price target to reflect a more conservative valuation multiple.
In another report released on May 9, H.C. Wainwright also maintained a Buy rating on the stock with a $2.00 price target.
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Boxlight (BOXL) Company Description:
Boxlight Corp. engages in the provision of interactive educational products. It designs, manufactures and distributes interactive projectors, flat panel displays, touch projectors, touchboards, and MimioTeach through the Boxlight Group and Genesis brands. The firm provides features and specifications like using pens or fingers as a mouse which allows teacher, moderator or student to write or draw images displayed on the surface. Its customers include schools including K-12 and higher education, enterprise for training purposes, government and healthcare. The company was founded in 1985 and is headquartered in Lawrenceville, GA.
