Virtra (VTSI) PT Raised to $16 at Lake Street Capital Markets

Lake Street Capital Markets analyst Jaeson Schmidt raised the price target on Virtra (NASDAQ: VTSI) to $16.00 (from $13.00) while maintaining a Buy rating.

The analyst commented: "We are disappointed in the softer results but do not think there has been a significant change in VirTra’s story or growth opportunities. We are encouraged by gross margin remaining in the high-60% range even off lower revenue, which we believe reflects the efficiencies and initiatives CEO Givens and team have implemented. Additionally, net cash improved from $10.8M exiting Q4 to $14.4M exiting Q1. While 1H24 is set to be more muted, we look for a step up in 2H24 as federal budget money starts to flow to programs and expect a snapback in growth in 2025. With shares off around 21% to $12.99 after hours, we believe the sell-off presents an attractive entry point with the stock trading at 13x ex-cash. We think VirTra can eventually become a consistent, double-digit revenue grower with mid-60% gross margins, and 30%+ AEBITDA margins. We are reiterating our Buy rating and raising our price target to $16."

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