Shares of Gorilla Technology Group Inc. (GRRR – Free Report) jumped 34.7% yesterday as AI enthusiasts continue to show strong interest in the stock. Based in London, Gorilla is a global solution provider in network intelligence, security intelligence, business intelligence and IoT technology.
The company’s recent achievements and strategic moves have attracted the attention of both investors and analysts, fueling increased demand for its shares. Before deciding whether to buy the stock now, let’s take a closer look at some of the recent developments.
What’s Driving GRRR?
Gorilla recently secured two major contracts in Taiwan, showcasing its growth potential and innovation. Over the past couple of years, the company has signed several large contracts and is currently in advanced negotiations for more. Just last month, Gorilla revealed that its project pipeline had surpassed $2 billion, covering several years and positioning the company for stable revenue and long-term growth. For 2025, Gorilla anticipates generating $90-$100 million in revenues, with an EBITDA margin of 20-25%.
In terms of valuation, GRRR appears more affordable, with a forward 12-month price/sales ratio of 3.03X, compared to the industry average of 6.28X.
Image Source: Zacks Investment Research
Gorilla’s new AI GPU offerings are expected to strengthen its global presence as the company continues to expand across the United States, Europe and Asia, tapping into diverse markets. The company’s financial position was further bolstered when one of its warrant holders exercised their warrants, injecting nearly $6 million in fresh capital. This has improved Gorilla’s cash reserves and balance sheet.
The company is also aggressively advancing its share buyback program. It has already utilized $3.8 million of its $6 million repurchase fund and plans to increase this allocation to $9 million, showcasing its commitment to maximizing shareholder value.
While Gorilla’s growth potential has attracted many investors, some are wary of the stock’s rapid appreciation. With a 329% increase in the past year — outperforming both the industry average of 59.7% and the S&P 500’s 26.7% rise — much of the positive outlook may already be reflected in the current price. As a result, the short-term upside could be limited.
GRRR Price Performance
Image Source: Zacks Investment Research
The stock’s volatility and recent price surges increase the risk of a market correction. Currently trading at $24.33, close to its 52-week high, GRRR has shown significant price swings, which could lead to unpredictable investment outcomes (52Wk Range: $2.09-$25.67).
In August 2023, the company identified evidence suggesting manipulation of its share price, raising concerns. In October 2024, it further talked about “ongoing manipulation attempts.”
Given these factors, potential investors should conduct thorough due diligence and assess their risk tolerance before making any decisions about GRRR. While the outlook remains largely neutral for the stock, it currently carries a Zacks Rank #3 (Hold).
Two Stocks to Consider
Two better-ranked stocks in the broader Business Services space are Coinbase Global, Inc. (COIN – Free Report) and Cantaloupe, Inc. (CTLP – Free Report) . While Coinbase currently sports a Zacks Rank #1 (Strong Buy), Cantaloupe carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s current-year earnings of $5.23 per share indicates a massive jump from the year-ago level of 37 cents. COIN beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 341.4%. The consensus estimate for current-year revenues is pegged at $5.7 billion, implying 83.4% year-over-year growth.
The Zacks Consensus Estimate for Cantaloupe’s current-year earnings indicates a 113.3% year-over-year surge. CTLP beat earnings estimates in two of the trailing four quarters, met once and missed on the other occasion, with the average surprise being 20%. The consensus estimate for current-year revenues implies 15.8% year-over-year growth.
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