Goldman Sachs recently updated its stance on Riskified Ltd. (NYSE:RSKD), shifting its rating to Neutral and setting a new price target of $6, up from $5.50. Thi

Riskified Ltd. Receives Neutral Rating from Goldman Sachs with a New Price Target


blog post cover photo

Image credit: Google Images

  • Goldman Sachs upgrades Riskified Ltd. to neutral, raising the price target to $6 from $5.50.
  • Riskified's Q1 financial results show a 17% year-over-year growth in merchandise volume and an 11% increase in revenue, with a gross margin improvement to 55%.
  • The company announces a record in quarterly free cash flows and an additional $75 million share repurchase program, signaling strong financial health and confidence in future growth.

Goldman Sachs recently updated its stance on Riskified Ltd. (NYSE:RSKD), shifting its rating to Neutral and setting a new price target of $6, up from $5.50. This adjustment, reported by TheFly, reflects a cautious yet optimistic view of the company's future performance. Riskified, known for its cutting-edge artificial intelligence (AI) software aimed at detecting and preventing fraudulent transactions in e-commerce, plays a crucial role in the internet software industry. Its technology is pivotal for online retailers seeking to minimize losses due to fraud, making it a key player among companies offering similar fraud prevention solutions.

The company's stock price experienced a notable surge of 14% on May 15, 2024, reaching $6.18, following the announcement of its first-quarter financial results. This increase is a testament to the market's positive reception of Riskified's performance, which included a 17% year-over-year growth in merchandise volume and an 11% increase in revenue. Furthermore, Riskified's gross margin improvement to 55% indicates a significant enhancement in its operational efficiency, showcasing its ability to manage costs effectively while scaling its operations.

Despite the positive momentum, some investors have expressed concerns regarding the pace of advancement in Riskified's AI software. The apprehension revolves around whether the technology can evolve quickly enough to sustain long-term growth. However, the company's strong free cash flow and the gross margin improvement suggest a solid financial foundation, potentially mitigating these concerns. Riskified's commitment to refining its AI capabilities is crucial for maintaining its competitive edge and ensuring customer satisfaction by reducing false declines and chargebacks.

Riskified's recent financial achievements, including a record in quarterly free cash flows and the authorization of an additional $75 million share repurchase program, signal robust financial health and a confident outlook from the company's leadership. The company's success in the Tickets and Live Events Sub-Vertical, marked by significant new partnerships and upsells, further illustrates its expanding influence and effectiveness in niche markets. These strategic wins highlight Riskified's ability to adapt and thrive in diverse e-commerce environments.

The company's stock performance, with a significant increase to a new year-high, reflects investor confidence in Riskified's growth trajectory and operational success. With a market capitalization of approximately $1.1 billion and a trading volume of about 3.03 million shares, Riskified stands as a formidable entity in the e-commerce fraud prevention space. Its recent financial results and strategic initiatives underscore its potential to continue delivering value to shareholders and clients alike, navigating the complexities of online fraud with innovative solutions.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep