Analyst David Koning from Baird has adjusted his rating for Ibex (IBEX, Financial) from Outperform to Neutral, maintaining the stock's price target at $30. The decision reflects a balanced risk/reward scenario for the stock following a significant valuation re-evaluation over the past year. Despite Ibex's impressive performance, marked by a return to double-digit growth in the March quarter, the analyst believes the stock's current risk and reward levels are evenly matched.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for IBEX Ltd (IBEX, Financial) is $30.50 with a high estimate of $31.00 and a low estimate of $30.00. The average target implies an downside of 0.16% from the current price of $30.55. More detailed estimate data can be found on the IBEX Ltd (IBEX) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, IBEX Ltd's (IBEX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for IBEX Ltd (IBEX, Financial) in one year is $22.79, suggesting a downside of 25.4% from the current price of $30.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the IBEX Ltd (IBEX) Summary page.
IBEX Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- IBEX Ltd (IBEX, Financial) achieved a record revenue of $140.7 million in Q3 FY25, marking an 11% increase from the previous year.
- The company reported a return to double-digit organic revenue growth at 11%, the highest in over two years.
- IBEX Ltd (IBEX) expanded its gross margin by 50 basis points and delivered an adjusted EBITA of $19.4 million.
- The company successfully entered the Indian market, a strategic priority, enhancing client delivery options.
- IBEX Ltd (IBEX) won four new key logo opportunities, including a significant deal with a top-tier global e-commerce company, showcasing its competitive edge.
Negative Points
- The fintech vertical experienced a 12% decline, impacting overall revenue growth.
- Adjusted net income decreased to $11.8 million from $12.6 million in the prior year quarter.
- Higher selling, general, and administrative expenses were incurred due to investments in India and technology.
- The company faced increased interest and income tax expenses, affecting net income.
- Free cash flow decreased to $3.6 million from $9.7 million in the prior quarter, partly due to increased capital expenditures.
