Stock Analysis
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- NasdaqGS:CLBT
Is Now The Time To Look At Buying Cellebrite DI Ltd. (NASDAQ:CLBT)?
Cellebrite DI Ltd. (NASDAQ:CLBT), might not be a large cap stock, but it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Cellebrite DI’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Cellebrite DI
What Is Cellebrite DI Worth?
Good news, investors! Cellebrite DI is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $7.25, but it is currently trading at US$5.77 on the share market, meaning that there is still an opportunity to buy now. However, given that Cellebrite DI’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Cellebrite DI?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Cellebrite DI, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? Although CLBT is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to CLBT, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on CLBT for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 1 warning sign for Cellebrite DI you should know about.
If you are no longer interested in Cellebrite DI, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
What are the risks and opportunities for Cellebrite DI?
Cellebrite DI Ltd. develops solutions for legally sanctioned investigations.
Rewards
Trading at 15.7% below our estimate of its fair value
Revenue is forecast to grow 14.13% per year
Earnings grew by 71.5% over the past year
Risks
Earnings are forecast to decline by an average of 35.4% per year for the next 3 years
Further research on
Cellebrite DI
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NasdaqGS:CLBT
Cellebrite DI
Cellebrite DI Ltd. develops solutions for legally sanctioned investigations.
Flawless balance sheet and good value.
