Asure Software is a small-cap company with strong growth potential, receiving positive analyst reviews.

Asure Software (ASUR), a small-cap company valued at $274.5 million, offers cloud-based human capital management solutions. Its stock has risen 13.2% year to date, outperforming the market. With first-quarter revenue of $34.9 million, Asure reported a 10% increase year-over-year, attributed to strong performance in key products. Recurring revenue accounted for 95% of total revenue, showcasing business stability.

Despite a net loss, Asure Software saw an increase in adjusted EBITDA to $7.3 million compared to the previous year. The company anticipates a flatter cost structure in upcoming quarters. Asure has been focusing on enhancing client experience, expanding its solutions, and pursuing strategic mergers and acquisitions to drive growth and customer base expansion.

Asure’s AsurePay product, an alternative digital banking solution, has been successful, with over 70% of active cardholders using it regularly. The company has made 16 acquisitions in the past 18 months, primarily to acquire customers and improve product capabilities. Asure’s contracted revenue backlog surged 339% year on year to $82 million, supporting its optimistic 2025 outlook.

Maintaining full-year revenue guidance for 2025, Asure expects double-digit growth and adjusted EBITDA margin between 23% to 24%. Analysts predict revenue growth of 13% in 2025, followed by 9.3% in 2026, with projected earnings per share of $0.89 in 2025 and $1.01 in 2026. Asure, trading at nine times forward earnings, presents a reasonable growth opportunity.

Asure Software aims to scale its annual revenue to $180 million to $200 million, with adjusted EBITDA margins of 30% or higher in the medium term. The company is leveraging artificial intelligence (AI) through collaborations with Amazon Web Services to enhance customer behavior analysis and product development. Analysts and experts view Asure as undervalued with significant growth potential.

With a “Strong Buy” rating on Wall Street, Asure stock has received positive analyst reviews. Out of nine analysts covering ASUR stock, eight rate it as a “Strong Buy,” while one recommends a “Moderate Buy.” The mean target price is $14.33, suggesting a 32% upside potential, with a high price estimate of $20 indicating an 85% potential increase over the next 12 months.

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