Key insights
- Truist upgraded Global-E Online (GLBE) to Buy, citing strong growth prospects driven by market expansion, merchant additions, and the Passport acquisition. The firm anticipates significant GMV growth and EPS expansion, suggesting a positive outlook for the e-commerce enabler. This upgrade, coupled with positive analyst sentiment and potential undervaluation, could signal increased investor confidence in the company's future performance, potentially influencing related tech and e-commerce stocks.
Investing.com - Truist upgraded Global-E Online Ltd (NASDAQ:GLBE) to Buy from Hold and raised its price target to $39 from $34, analyst Matthew Coad said Wednesday. With shares currently trading at $32.38, the upgrade represents potential upside of over 20%. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The firm cited increased optimism regarding Global-e’s volume growth driven by strong underlying market growth, recent strength in new merchant additions, and expectations for GMV from the Managed Markets offering to quadruple in the coming years. The firm expects this to provide a 4-5 percentage point tailwind to year-over-year GMV growth for Global-e in 2027 and 2028.
Truist said the recent acquisition of Passport Global widens Global-e’s moat by broadening its fulfillment capabilities. The firm expects adoption of newer products like duty drawbacks to partially offset take rate pressures from the shift to multi-local and a new arrangement with Shopify for the Managed Markets offering.
The firm raised its estimates to incorporate the Passport acquisition, which it models to close on July 1st, while increasing GMV growth expectations mainly due to revised expectations for the Managed Markets offering. Truist expects GAAP EPS to grow at a 52% CAGR from 2026 to 2028. The company’s strong momentum is evident in its 28.6% revenue growth over the last twelve months, while InvestingPro Tips highlight that four analysts have recently revised their earnings upwards. For deeper insights, investors can access Global-e’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro.
The $39 price target is based on 22 times Truist’s definition of adjusted EPS, which includes stock-based compensation as a real expense. The firm’s 2028 forecasts are high single digits above consensus across key performance indicators.
In other recent news, Global-e Online Ltd. reported robust first-quarter results, showcasing a 40% year-over-year increase in gross merchandise volume and a 33% rise in revenue. The company’s adjusted EBITDA grew by 59%, with the margin expanding by approximately 330 basis points. These figures surpassed consensus estimates, with GMV and revenue slightly exceeding projections and EBITDA margin outperforming expectations by about 50 basis points. Additionally, Global-e announced a definitive agreement to acquire Passport Global Inc. for $350 million, with the transaction comprising cash and Global-e ordinary shares. An additional $75 million will be contingent on Passport meeting specific financial targets by 2026. This acquisition has been met with positive reactions from analysts, with Benchmark and Needham both reiterating their Buy ratings on Global-e’s stock. The company also unveiled a new $500 million share repurchase program, following the completion of 80% of its previous $200 million plan. UBS has maintained its Buy rating on Global-e, highlighting the strong quarterly performance as a significant factor.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Most traders can read a chart. The hard part is the moment: entry window open, pattern forming, and you're still waiting for more confirmation. That's the conviction gap — and our chart analysis closes it. Unlike other AIs that just read data, our Vision AI literally "sees" your charts and hands you a complete trading plan: entry, stop-loss, and profit target in under 60 seconds. Know exactly what to do next, every time.