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Gorilla Technology Soars 34.7%: Should You Ride the AI Wave?
GRRRGorilla(GRRR) ZACKS·2025-01-03 16:10

Company Overview - Shares of Gorilla Technology Group Inc (GRRR) surged 34 7% driven by strong interest from AI enthusiasts [1] - The company is a global solution provider in network intelligence security intelligence business intelligence and IoT technology based in London [1] Recent Developments - Gorilla secured two major contracts in Taiwan highlighting its growth potential and innovation [3] - The company has signed several large contracts over the past couple of years and is in advanced negotiations for more [3] - Gorilla's project pipeline surpassed 2billionpositioningthecompanyforstablerevenueandlong−termgrowth[3]−For2025Gorillaanticipatesgenerating2 billion positioning the company for stable revenue and long-term growth [3] - For 2025 Gorilla anticipates generating 90-100millioninrevenueswithanEBITDAmarginof20−25100 million in revenues with an EBITDA margin of 20-25% [3] Financial Position and Valuation - GRRR has a forward 12-month price/sales ratio of 3 03X compared to the industry average of 6 28X making it more affordable [4] - A warrant holder exercised their warrants injecting nearly 6 million in fresh capital improving Gorilla's cash reserves and balance sheet [5] - The company has utilized 38millionofits3 8 million of its 6 million share repurchase fund and plans to increase this allocation to 9million[6]MarketPerformance−GRRR′sstockpriceincreasedby3299 million [6] Market Performance - GRRR's stock price increased by 329% in the past year outperforming the industry average of 59 7% and the S&P 500's 26 7% rise [7] - The stock is currently trading at 24 33 close to its 52-week high with significant price swings (52Wk Range: 209−2 09-25 67) [10] Industry Comparison - Coinbase Global Inc (COIN) and Cantaloupe Inc (CTLP) are better-ranked stocks in the broader Business Services space [11] - Coinbase has a Zacks Rank 1 (Strong Buy) with current-year earnings expected to jump from 37 cents to 523pershareandrevenuesprojectedat5 23 per share and revenues projected at 5 7 billion implying 83 4% year-over-year growth [12] - Cantaloupe has a Zacks Rank 2 (Buy) with current-year earnings expected to surge 113 3% year-over-year and revenues projected to grow by 15 8% [13]