DA Davidson has adjusted its valuation of AvePoint Inc. (NASDAQ: AVPT), cutting the firm's price target to $18 from $20 while leaving its rating on the shares at Buy. The move comes as AvePoint shares trade well below analyst targets and near a one-year low.
At the time of the note, AvePoint was trading at $10.62 - well under the analyst target range of $15 to $26. InvestingPro data show the stock close to its 52-week low of $10.12 and down about 45% over the last 12 months.
The research team at DA Davidson expects a robust fourth-quarter print when AvePoint reports, forecasting annual recurring revenue at or above the midpoint of company guidance. AvePoint is scheduled to announce results on Thursday, February 26 before the market opens. DA Davidson said it believes such results could act as a catalyst, particularly given mixed ARR outcomes versus consensus in recent quarters and some investor skepticism regarding fourth-quarter ARR.
At the same time, DA Davidson modestly reduced its calendar year 2026 EBIT margin estimate. The firm noted a risk that AvePoints initial calendar year 2026 EBIT margin guidance could come in slightly below consensus, a development that the analyst team said could offset the upside from a better-than-expected ARR print.
Despite the margin caveat, DA Davidson characterized the current risk/reward profile on the shares as very attractive at prevailing price levels.
Recent engagement and reaffirmation
In related activity, DA Davidson reiterated its Buy rating on AvePoint and maintained a $20.00 price target following meetings with the company's management team. Those discussions included the CEO, CFO, Chief Strategy & Marketing Officer, and the Head of Investor Relations. The firm cited strong growth as a central reason for preserving a positive stance, and said the meetings provided insight into AvePoint's strategic direction and leadership confidence.
DA Davidson indicated the reaffirmation underscores optimism about AvePoint's future performance, and suggested investors may find the additional managerial engagement relevant when evaluating their positions.
What to watch
- The companys fourth-quarter ARR relative to the midpoint of guidance and consensus expectations.
- Managements initial calendar year 2026 EBIT margin guidance and how it compares with DA Davidsons modestly reduced estimate and broader consensus.
- Market reaction to the combination of ARR results and margin commentary, given the stocks proximity to its 52-week low.