Needham & Company Starts Grid Dynamics Holdings (GDYN) at Buy

Needham & Company analyst Mayank Tandon initiates coverage on Grid Dynamics Holdings (NASDAQ: GDYN) with a Buy rating and a price target of $10.00.

The analyst comments "GDYN is a provider of digital transformation services to the Fortune 1000 with a focus on the technology, retail, CPG, manufacturing, and financial services verticals. GDYN trades at an EV/EBITDA multiple of ~11x our FY22 estimate, a sizable discount to its peers (DAVA, EPAM, GLOB), which we believe creates a compelling LT investment opportunity. While we believe a modest discount to its more established peers is warranted given GDYN's brief track record as a publicly listed company and its high client concentration, we expect the valuation gap to narrow as GDYN ramps new logo wins, diversifies its client base, and growth returns to trend levels (20%+) as headwinds stemming from Covid-19 abate."

For an analyst ratings summary and ratings history on Grid Dynamics Holdings click here. For more ratings news on Grid Dynamics Holdings click here.

Shares of Grid Dynamics Holdings closed at $7.11 yesterday.

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