IBEX Ltd. (NASDAQ: NASDAQ:) Price Target Raised to $23.00 by Baird - Positive Outlook on Revenue Growth and AI Expansion Opportunities
Baird, a leading financial services firm, has increased its price target for IBEX Ltd. shares to $23.00, up from $20.00, while maintaining an Outperform rating. The adjustment comes after a recent call with IBEX management, where Baird expressed optimism about the company's potential. Industry demand is stabilizing, with IBEX showing revenue growth in Q4. The company aims for 5-7% revenue growth and 15% EBITDA margins, leveraging AI for margin expansion.
Baird finds IBEX's valuation attractive, with multiples of around 8x estimated EPS for 2025 and 4-4.5x estimated EBITDA. Historically, customer care companies are acquired at 7-8x NTM EBITDA, suggesting a 50-55% upside in IBEX's stock price. RBC Capital Markets also raised its price target to $20, reflecting confidence in IBEX's return to revenue growth.
InvestingPro Insights reveal IBEX's low P/E ratio of 10.62 and active share buybacks, indicating confidence in future performance. The company's robust short-term and annual returns support Baird's positive outlook. For a more in-depth analysis, InvestingPro offers tips on IBEX's financial health, debt levels, and profitability.
In summary, IBEX Ltd. shows strong growth potential with positive revenue projections and strategic initiatives. Investors can benefit from the company's attractive valuation and promising outlook for future performance.