eading Investment Research Firm Maintains Buy Rating
Citing strong revenue growth and expectations to ramp through 2025, Chardan Capital Research just issued a new report maintaining its buy rating for Freight Technologies (NASDAQ: FRGT) (“Fr8Tech”) and pegs the stock at about 8X current levels. In the report, Chardan states in part, “… Freight Technologies is applying a proven solution to a legacy sector; upside remains compelling from current levels.”
A big part of what makes Freight Technologies so compelling is the transformative nature of its technology that’s modernizing the antiquated systems of an extremely important industry – cross border North American trade under USMCA, which reached nearly $900 Billion in 2022. To address this booming market, Freight Technologies custom-developed an AI and machine learning powered platform that provides a real-time portal for B2B cross-border and domestic shipping throughout North America.
The company’s platform improves efficiencies and experiences for brokers, carriers and shippers by combining everything in one easy to use and effective control center – optimizing logistics and making fleets more efficient while reducing transportation costs. Little wonder that the company’s Fr8app has quickly become the industry’s leading freight-matching platform.
Other compelling upside factors Chardan cited in the report:
- FRGT offers a streamlined process for cross border shipping and additions of shippers and carriers expected to ramp through 2025E.
- BUY rating and $2.00 price target maintained based on 2.4x its 2025E EV/Revenue multiple.
- FRGT reported 2022 revenue of $25.9mn (vs. forecast $25.1mn) and guided 2023 to ~40% annual growth at $36mn.
- More participants offer “network” effect benefits, similar to how ride-sharing developed, as FRGT remains in a key position to the legacy cross border transit model in the Mexico/U.S. market.
- Expect more color on development of FRGT’s high margin less than truckload (LTL) business. Forecast revenue from that segment could reach $4mn in 2024E and $6mn in 2025E, at nearly twice whole truckload gross margin.
- Continue to forecast that positive operating leverage will lead to EBITDA profitability in 2025E.
- Projections that revenue will reach $91mn by 2025E, implying a 43% 2022E-2025E CAGR.
Freight Technologies is on a mission to revolutionize cross-border shipping and domestic shipping within the United States-Mexico-Canada (USMCA) region. The company’s state-of-the-art platform provides carriers with increased growth opportunities and shippers with flexibility, visibility and simplicity for the complex process of international over-the-road shipping.
Fr8app is just one in a suite of platforms developed and deployed by Freight Technologies. The company’s Fr8Tech artificial intelligence powered cloud-based platforms are automating the cross-border over-the-road transportation process, reducing human touch points, expediting load booking times and saving users both time and money across multiple touch points.
Freight Technologies’ Fr8Tech suite of solutions that simplify shipping:
- Fr8app – A B2B marketplace powered by AI and Machine Learning offering a real-time broker portal to connect shippers with qualified carriers.
- Fr8Radar – A tracking solution providing shippers and carriers real-time locational data via Fr8app’s mobile solution or through integration with third-party GPS alternatives.
- Fr8TMS – A transportation management system designed to help shippers manage their freight and all the documents involved in shipping transactions, including invoices, customs documents, confirmation rates and proof of deliveries.
- Fr8FMS – A fleet management system allowing transportation companies to better manage their fleets, reduce operational costs and provide better service to their customers.
- Fr8Data – A data solution offering real-time dashboards and reports to shippers and carriers to increase visibility and control while supporting better business decisions.
- Fr8Fleet – A platform that provides private fleet management, enabling large corporate shippers to purchase dedicated capacity secured by Fr8app in exchange for a fixed fee.
- Fr8Now – The company’s nascent LTL offering in Mexico. More information coming soon.
Headquartered in Houston with multiple locations across the U.S. and Mexico, Freight Technologies has established strong relationships in Mexico, one of the largest trading partners of the U.S. Given the size and importance of North American cross-border trade, it’s surprising that the process is crippled by antiquated systems, fragmentation, and rampant inefficiencies. Most of the legacy players – brokers, shippers and carriers – still rely on outdated systems to arrange transport, spending hours on the phone negotiating pricing, waiting days to find trucks and drivers, preparing and printing forms, and operating without tracking or visibility. Sprinkle in cross-border complexity and confusion dealing with customs, language barriers and additional paperwork, and the result is an industry ripe for technological disruption.
Freight Technologies intends to transform this highly important yet moribund sector by delivering AI powered solutions to complex cross border logistics. Chardan Capital Research has recognized that fact and believes the stock is currently undervalued. Even if the forecast is only half right, there’s big money to be made.
For more information, visit the company’s website at www.Fr8Technologies.com.
NOTE TO INVESTORS: The latest news and updates relating to FRGT are available in the company’s newsroom at https://ibn.fm/FRGT
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