Stock jumps 43% as Benchmark issues speculative buy rating
Near Intelligence Inc. (NIR) experienced a significant boost in its stock price on Friday, surging by 43% after investment firm Benchmark initiated coverage of the company. Analyst Mark Zgutowicz, in recommending a speculative buy rating for NIR, emphasized that the stock is currently undervalued.
Unleashing the Power of Consumer Behavior Insights
As a renowned software company specializing in consumer behavior analysis, Near Intelligence aids businesses in gaining a comprehensive understanding of their target audience. Despite its promising market potential, NIR’s performance has been struggling since it went public in May through a merger with a special-purpose acquisition corporation (SPAC). As of now, the stock trades at a staggering 83% below its initial $10 issue price.
Expanding Opportunities in a $23 Billion Market
Zgutowicz shed light on NIR’s growth prospects and highlighted the remarkable size of its target market, estimated to be valued at $23 billion. According to the analyst, the unique data insights offered by NIR hold considerable scarcity value in international markets, positioning the company for a larger share of global deals in the future. In his note, Zgutowicz expressed confidence in NIR’s ability to overcome any near-to-medium term liquidity concerns, and he drew attention to the fact that approximately 90% of the company’s revenue is generated through subscription-based services. He also pointed out that NIR has strategically factored in significant “overage” fees, indicating its attractive variable pricing levers when it comes to its offerings.
