Brightcove May Gain 36% in 2021. But is it a Strong-buy?
A new year brings new hopes and challenges. During 2020, lots of stocks traded in the bearish territory, suffering due to the Covid-19 global crisis. However, experts recommend some stocks, which are strong-buys. A Boston-based software company – Brightcove, is one of them. It offers a range of video platform products, including social and interactive add-ons and cloud-based hosting. Brightcove is a leader in the delivery as well as the monetization of cloud-based online video solutions.
Such a business model’s strength during the Covid-19 pandemic is obvious, considering the massive shift of white-collar workers toward telecommuting, remote offices, and video conferencing. The stock’s earnings reached 11 cents per share in the third quarter, almost double the year-ago quarter. Furthermore, revenues have been stable, staying between $46 million and $48 million per quarter in the previous year. It seems coronavirus hasn’t impacted the stock.
After a minor blip during last winter, Brightcove’s shares have been going up in steps during 2020. The pace has especially accelerated since the end of July after the second quarter’s results release. The stock skyrocketed by 103% over the previous year.
What do the analysts think about stock?
Northland Capital analyst Michael Latimore noted that the general macro headwinds seem to turn into video niche tailwinds. According to the analyst, Brightcove’s leading tech platform and strong sales execution drive strong bookings. He believes the salesforce is currently at full productivity. Besides, the stock will likely add more channel managers in 2021. Presently, Management focuses on process improvements, attempting to achieve consistency in revenue retention rates.
Considering all these, Latimore rated the stock as a Buy, setting his price target at $24. In case of success, investors may gain 36% over the year.
Other analysts agree with Latimore, giving this stock a strong-buy rating. Brightcove shares’ average price target is $20.17. With such a price target, investors stand to gain 14% over the next months.
