Gorilla Technology Group (GRRR) Valuation Check As Astrikos AI Investment Targets AI Ready Smart Infrastructure Markets
Gorilla Technology Group (GRRR) is back on investor radars after it agreed to invest in Astrikos AI, a move aimed at extending its edge computing and video analytics offerings into AI-ready smart infrastructure globally.
See our latest analysis for Gorilla Technology Group.
The Astrikos AI deal comes after a volatile stretch for Gorilla Technology Group, with a 7 day share price return of 19.6% following a 90 day share price return decline of 27.77%. The 3 year total shareholder return decline of 84.23% signals longer term pressure and suggests current momentum is rebuilding from a low base.
If this AI and edge computing story has your attention, it could be worth widening your search across high growth tech and AI stocks that sit at the intersection of software and infrastructure.
With Gorilla posting a 1 year total return decline of 21.94% alongside annual revenue growth of 53.82% and a loss of US$67.16 million, is the recent AI excitement a genuine entry point or already baked into expectations?
Most Popular Narrative Narrative: 64.2% Undervalued
Against the last close of US$13.06, the most followed narrative points to a fair value of US$36.50, framing Gorilla as heavily discounted on future fundamentals.
Ongoing transition from lumpy, milestone-driven project revenue to predictable, long-term recurring revenue contracts, coupled with an improving product/service mix and normalization of gross margins (targeting 40%), is expected to deliver greater earnings visibility, higher net margins, and steadier cash flows over the next several years.
Curious how revenue, margins, and earnings are all being re-shaped in this story? The fair value hangs on a sharp profit swing and a very specific growth runway. The full narrative spells out how those moving pieces connect.
Result: Fair Value of $36.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this bullish narrative still depends on landing and executing large government contracts, as well as on future equity raises not diluting shareholder value more than expected.
Find out about the key risks to this Gorilla Technology Group narrative.
Build Your Own Gorilla Technology Group Narrative
If you think this story plays out differently, or you prefer to review the numbers yourself, you can build a fresh thesis in minutes, starting with Do it your way.
A great starting point for your Gorilla Technology Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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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.
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