Grid Dynamics surges after Q4 beat, rosy 2025 outlook

Grid Dynamics Holdings

21/02/2025 12:59

** Shares of IT services firm Grid Dynamics  GDYN.O  jump 20.9%
premarket to $24.76 after qtrly results and full-yr rev guidance
surpass expectations
    ** Shares could open at over three-year high, if gains hold,
and set to snap four-session losing streak
** San Ramon, California-based GDYN late Thurs posted Q4 rev of
$100.3 mln, up 28.5% y/y, and adj EPS of 12 cents, beating LSEG
estimates of $96.1 mln and 10 cents/sh
    ** During the qtr, co said its pipeline of AI opportunities
grew to more than 130, a 30% increase from prior qtr, and it is
seeing increasing demand across its customer base to begin 2025
    ** For 2025, co projected rev of $415-$435 mln, up to 24%
growth y/y. Analysts on avg anticipated rev of $409.4 mln
    ** TD Cowen reiterated its 'buy' rating, saying
broader-based improvement underpinned by co's strategic
positioning with "blue chip accounts that reflects its strong
engineering/AI offering"
    ** Needham raises its PT by $5 to $30
    ** All 5 analysts covering GDYN are bullish with median PT
of $19 - LSEG
    ** Through Thurs close, stock down 8% YTD but up ~50% over
the past 12 months

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))