Why Freightos Is Poised To Lead The Digital Revolution In The Freight Industry: Analyst

Oppenheimer analysts, including Jason Helfstein and Jed Kelly, initiated coverage on Freightos Ltd CRGO with an Outperform rating and a price target of $5.

The analyst thinks the company is well-positioned to benefit from the transition of the freight industry toward digitization, given its size and position in the industry compared to other digital freight booking platforms. 

Kelly also believes Freightos can capitalize on the opportunity presented due to the freight industry's lack of transparent pricing/data through its Solutions segment.

The analyst notes that CRGO's current cash position (including short-term deposits) of $61 million vs. estimated cumulative cash burn of $60.5 million through 2025 implies sufficient cash to fund the business through break-even.

The analyst estimates FY22–FY28 gross booking value CAGR of 33%, with FY22–FY28E revenue CAGR of 28%.

In particular, the analyst estimates revenue and EBITDA of $20.5 million and $(20.7) million in FY23 and $26.0 million and $(18.3) million in FY24, respectively.

Price Action: CRGO shares are trading higher by 4.8% at $2.83 on the last check Wednesday.