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Forge Global Holdings (NYSE:FRGE) was rising Tuesday pre-market after UBS upgraded the financial services platform, citing business improvement and path to profitability.
FRGE was trading 4.29% higher at $1.46.
The California-based company had reported a beat in its Q2 top- and bottom-line figures.
“We have increased confidence in further improvement in FRGE’s core private company shares trading business, while new cost savings initiatives now present a path to profitability,” analysts led by Alex Kramm said in a research note.
“With the environment improving and transaction volume up 180% y/y in the most recent quarter, we now forecast volume up 65% in FY24 and net revenue up over 17% y/y,” the note said.
The cost savings plan announced on Aug. 7 as part of the company’s Q2 financial results should drive an adjusted EBITDA profit in 2026, UBS noted.
The financial services company raised its recommendation on the stock to Buy from Neutral, and maintained the $3 price target.
The rating aligns with the average sell-side analysts and Seeking Alpha authors rating of Buy.
Meanwhile, SA’s Quant Rating system grades FRGE as Hold. Quant assigns the stock a score of 2.95 on a scale of 5, with a C for Valuation, B for Growth, D- for Profitability, F for Momentum and A+ for Revisions.
