Verb Technology (VERB) stock gained almost 29 percent on Jul. 15, and was higher in premarket trading on Jul. 16. The stock is soaring on news of a partnership that appears to be a perfect fit for the software company. What’s VERB stock's forecast for 2021, and is it a good buy now?
Verb designs and develops a SaaS (software-as-a-service) applications platform. The company offers next-generation CRM (customer relationship management) lead generation, sales support, and video marketing software applications to sales-based companies in 60 countries and in 48 languages. Both mobile and desktop versions of the applications are available.
VERB stock is rising
VERB stock has gained significantly after the software company announced it has collaborated with Market America Worldwide to introduce SHOP LIVE, a customized, interactive, and live-streaming channel for Market America's global distributors. SHOP LIVE will allow its distributor to showcase and sell products to their existing and potential customers at any time and from any location.
VERB stock is upgraded by Ascendiant Capital
Ascendiant Capital analyst Edward Woo initiated coverage of VERB stock with a “buy” recommendation and price target of $4, which implies a 25 percent upside to its current price. Woo highlighted that the demand for Verb’s products and services continues to grow rapidly. The company’s data collection and analytics capabilities offer a more effective and efficient sales process, resulting in higher sales conversion rates.
VERB’s stock forecast
According to MarketBeat, analysts' average target price for VERB stock is $3.38, which is 5 percent above its current price. All three Wall Street analysts tracking VERB recommend "buy."
VERB’s short interest
VERB's short interest has increased. According to Fintel, on Jul. 15, around 74.6 million VERB shares were sold short, which represents almost 28 percent of volumes that day. On Jul. 14, about 26.6 million VERB shares were sold short. While the short volume isn't necessaarily high enough to trigger an epic short squeeze like GameStop, it's good enough to attract retail investors on Reddit.
VERB stock is a good buy, but not at this price
Verb is a rapidly growing company in the tech sector. The company has patent-pending technology that it claims can increase customer conversion rates by 600 percent. This is significant in a world that's getting more digital each day.
Verb’s products are cloud-based and available to enterprise and individual users by subscription. The technology Verb provides can integrate with popular software such as that of Oracle NetSuite, Adobe Marketo, Salesforce.com, and Odoo. The CRM software industry is the largest software segment and expanding rapidly.
VERB has an EV (enterprise value) of around $198.8 million and is expected to generate revenue of $22 million in 2022, which would mean a 2022 EV-to-sales multiple of 9x. Considering that peers Microsoft and Adobe are trading at next-12-month EV-to-sales multiples of 11.5x and 17.3x, respectively, VERB stock looks undervalued and worth considering on a dip—at its current price, the stock has risen too high and too quickly.