Noble slashes target price for micro-cap software developer QuoteMedia by 23%

Noble Capital Markets has slashed its target price for QuoteMedia, a micro-cap software developer and financial data provider, by 23%, while reiterating its “buy” recommendation. The past year was QuoteMedia’s worst in nearly a decade, and although the management has promised record revenue in the first quarter of 2025, investors might be wary, Noble argued in its note on QuoteMedia.

Noble values QuoteMedia at $0.20 per share, 23% below its previous target price but about 25% above current quotes. On Friday, April 17, the stock gained 6.6% to close at $0.16 per share. It is now up more than 14% for the year to date.

Noble revised its target price following the release of QuoteMedia’s 2024 financials, which showed a 1% drop in revenue to $18.7 million. According to Noble, that’s the first revenue decline in almost a decade.

QuoteMedia flags that it lost several large clients last year. The company provides solutions for processing market data and streaming data feeds, among other things. Its clients include wealth brokerages, media outlets, and individual investors, according to the company site.

To address the client losses, QuoteMedia has launched several new products and claims to have “already replaced, and in fact have exceeded,” the recurring revenue lost with new contracts, as noted in the earnings release. Now, it guides for revenue in the first quarter of 2025 to be the highest in the company’s history, says Chair Robert J. Thompson.

“Investors likely will be cautious about the sanguine outlook for 2025 given past revenue and cash flow disappointments,” Noble points out, adding that “a few quarters of solid revenue traction on the books” could help win them over. It also notes that QuoteMedia is trading lower than peers, which makes it attractive from a risk/reward perspective. Against this backdrop, Noble reiterated its “outperform” rating.