A Closer Look at 4 Analyst Recommendations For Riskified

During the last three months, 4 analysts shared their evaluations of Riskified RSKD, revealing diverse outlooks from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $5.5, along with a high estimate of $7.00 and a low estimate of $5.00. This upward trend is evident, with the current average reflecting a 15.79% increase from the previous average price target of $4.75.

Decoding Analyst Ratings: A Detailed Look

The standing of Riskified among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Riskified. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Riskified compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Riskified's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Riskified's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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Unveiling the Story Behind Riskified

Riskified Ltd has built a next-generation eCommerce risk management platform that allows online merchants to create trusted relationships with their consumers. It primarily generates revenue by granting merchants access to its eCommerce risk management platform and reviewing and approving eCommerce transactions for legitimacy.

Breaking Down Riskified's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Riskified showcased positive performance, achieving a revenue growth rate of 13.77% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Riskified's net margin excels beyond industry benchmarks, reaching -29.11%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Riskified's ROE stands out, surpassing industry averages. With an impressive ROE of -4.26%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Riskified's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -3.51%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Riskified's debt-to-equity ratio is below the industry average. With a ratio of 0.06, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.