UPDATE: SMBC Nikko Securities Starts AvidXChange Holdings (AVDX) at Outperform
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SMBC Nikko Securities analyst Andrew Bauch initiates coverage on AvidXChange Holdings (NASDAQ: AVDX) with a Outperform rating and a price target of $15.00.
The analyst comments "
In B2B payments, it’s increasingly evident that a horizontal platform approach is most effective in winning the long tail of SMBs. That said, middle market is defined by many verticals which require (1) greater levels of customer service, (2) a wider breadth of offerings and (3) vertical-specific customizations that most horizontal platforms cannot deliver efficiently. Over the last decade, AVDX has carved out a leading position in the middle-market, driven by growing demand for sophisticated AP automation solutions and sound execution in penetrating what remains to be one of the largest TAMs in tech. That said, when considering AVDX’s 7k buyer customers represent <2% of the 435k middle market businesses in the U.S. today (middle market is defined as businesses with annual revenue from $5mm to $1B), we see years of runway for outsized growth. While AVDX may not have yet received investor attention comparable to other B2B payments names (reflected in a considerable valuation discount relative to peers with similar growth), we see a compelling opportunity for investors seeking exposure to one of the most important themes in our space and initiate Outperform on shares."
Shares of AvidXChange Holdings closed at $9.82 yesterday.
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