IDT: Assessing Valuation Following Strategic AI Partnership with Profluent Bio in Life Sciences Innovation

IDT is partnering with Profluent Bio to merge AI-powered protein design with traditional genomics, aiming to accelerate enzyme development. This collaboration could open new opportunities in cancer research and expand the company's innovation profile.

See our latest analysis for IDT.

IDT’s share price has swung sharply this past month, dropping more than 27%, even as the company announced fresh innovation partnerships and expanded its focus. Despite the recent volatility, long-term investors still sit on a 6% one-year total return and a remarkable 94% over three years. This shows momentum may be shifting, but IDT’s track record of value creation is undeniable.

If breakthroughs in life sciences spark your curiosity, it’s worth seeing what other innovators are out there. Explore the latest picks with our See the full list for free.

With shares trading at a steep discount to analyst targets despite new partnerships and ongoing transformation, investors must ask if IDT is now undervalued or if markets have already accounted for all future growth prospects.

Most Popular Narrative: 38% Undervalued

Compared to its last close price of $49.64, the most widely followed narrative sees IDT’s fair value at $80. The surge in projected fair value draws attention to key operational catalysts that could shape the company’s trajectory in coming years.

IDT's NRS segment is launching new features and functionalities, which are expected to deepen market penetration and drive revenue growth in the independent retailer market. This is anticipated to bolster recurring revenue and adjusted EBITDA.

Read the complete narrative.

Want to know what’s really driving the massive upside in this narrative? The secret is a bold set of profit and revenue projections, plus a valuation multiple rarely seen in telecom. Discover which assumptions could send IDT soaring above market expectations; the answers might surprise you.

Result: Fair Value of $80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, weaknesses such as increasing reliance on BOSS Money’s working capital needs or foreign exchange volatility still pose meaningful challenges to IDT’s bullish outlook.

Find out about the key risks to this IDT narrative.

Build Your Own IDT Narrative

Prefer digging into the details yourself? See how the numbers stack up and craft your perspective in just a few minutes, then Do it your way

A great starting point for your IDT research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Investment Ideas?

Seize your next opportunity with Simply Wall Street’s powerful screener, which helps you uncover promising stocks beyond IDT. Take action now or risk missing out.

• Spot companies making waves in artificial intelligence by checking out these 26 AI penny stocks, shaping tomorrow’s technology landscape.
• Boost your income potential and see which firms are rewarding shareholders with solid yields, thanks to these 17 dividend stocks with yields > 3%.
• Unlock hidden value and uncover growth stories the market may have overlooked with these 875 undervalued stocks based on cash flows.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com