May. 29 at 8:43 PM
Cellebrite DI shares rose sharply in midday trading after DA Davidson initiated coverage with a Buy rating and a
$20 price target, boosting investor confidence in the digital forensics software company. The firm said Cellebrite’s total addressable market is large, expanding, and likely underestimated, while pointing to multiple catalysts that could support further ARR growth and market share gains.
The bullish analyst call followed strong Q1 results from Cellebrite, with annual recurring revenue rising 21% year over year to
$493 million and adjusted EBITDA increasing 29% to
$30.6 million. The company also guided Q2 revenue to between
$130 million and
$133 million, implying growth of 15% to 17%.
Investors largely overlooked a recent insider sale by Chief Revenue Officer Marcus Jewell, who sold 12,658 shares on May 18 at an average price of
$12.77, trimming his stake by 2.8%. Instead, the market focused on improving fundamentals and the new analyst endorsement.
$CLBT