Evolv Technologies: TD Cowen Reinstates Buy Rating with $10 PT

Evolv Technologies: TD Cowen Reinstates Buy Rating with $10 PT

Evolv Technologies Holdings Inc. (NASDAQ: EVLV) has seen a significant boost in its stock valuation and financial outlook, as TD Cowen has reinstated its coverage on the company with a Buy rating and a $10.00 price target [1]. The stock, currently trading at $7.37, has reached near its 52-week high of $7.57, delivering an impressive 104% return over the past year.

The reinstatement of coverage by TD Cowen follows a period of suspension since October 25, 2024, and comes as new management has taken control of the company, financial restatements have been completed, and regulatory concerns have begun to diminish. The investment firm cited Evolv’s second-quarter results as "healthy" in its analysis, noting the company has raised its fiscal year 2025 revenue outlook to between $132 million and $135 million, representing year-over-year growth of 27% to 30% [1].

This revised guidance marks an increase from the company’s previous projection of 20% to 25% annual growth, signaling improved business momentum under the new leadership team. Additionally, Evolv has raised its EBITDA margin targets to mid-single digits, further supporting TD Cowen’s positive outlook on the security technology firm’s financial trajectory [1].

Evolv Technologies also reported its Q2 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of -0.02 USD, outperforming the anticipated -0.05 USD. Additionally, Evolv Technologies generated revenue of 32.5 million USD, exceeding the forecasted 30.95 million USD. These results highlight the company’s stronger-than-expected financial performance for the quarter. Despite the positive earnings report, Evolv’s stock experienced a decline in after-hours trading, closing at 7.39 USD, down from the previous close of 7.49 USD [2].

The recent surge in demand for Evolv’s AI-powered security solutions has driven the company’s revenue growth. The firm posted second-quarter revenue of $32.5 million – up 29% year-on-year and well ahead of analyst estimates. While Evolv is still recording net losses, it trimmed its per-share loss to $0.02, beating the -$0.04 forecast. The real standout: annual recurring revenue jumped 27% to $110.5 million, showing sticky customer relationships and solid subscription growth. Management credits this momentum to rising demand and confidence in AI-driven security as more organizations adopt smarter tech to protect people and places [2].

The improved outlook and positive earnings report have led to a favorable rating from TD Cowen, with the stock maintaining an average buy rating and a target just above its latest close. The company’s pledge to hit positive adjusted EBITDA and cash flow by the end of 2025 adds to confidence that the growth story has real staying power [2].

References:
[1] https://www.investing.com/news/analyst-ratings/evolv-technologies-stock-rating-reinstated-as-buy-by-td-cowen-on-growth-outlook-93CH-4195116
[2] https://finimize.com/content/evolv-technologies-ups-revenue-outlook-as-ai-security-gains-ground