MP1 was the market’s top performer on Thursday, surging +19.5% after raising its full-year revenue forecast; at one stage, the stock was up 27%. The software-based elastic connectivity provider raised its full-year revenue forecast, plus its NRR (net revenue retention) is showing signs of stabilisation, with an improvement of 1% since June 2024. At a glance, its first-half results were also solid, but the surge in the stock was all about the future
They see revenue of $216-222 million for the year with annual recurring revenue growth up +14%, plus they achieved top-line revenue growth across all regions. With the gross margin remaining stable at 70%, this was a good outcome.
- We can see further upside for MP1, but the risk/reward isn’t attractive around $11.50.
MM is cautiously bullish on MP1 ~$11
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