Cantaloupe, Inc (CTLP) Stock Forecast & Price Target

Cantaloupe Inc. (CTLP) demonstrated robust financial performance, achieving year-over-year revenue growth of 11.1% and an impressive adjusted EBITDA growth of 36.6% for the third quarter of fiscal year 2025. The recent trading session reflected strong market sentiment, with CTLP's shares rallying by 15.7% in response to a bid representing an approximately 18% premium over its previous closing price. Given this context, the company's current valuation, nearing 14 times consensus fiscal year 2026 adjusted EBITDA, appears justified by its significant growth trajectory in both top-line and bottom-line metrics.

Cantaloupe Inc. has been downgraded due to concerns regarding its acquisition by 365 Retail Markets at a price deemed below fair value, which suggests limited growth potential for current investors. The integrated solutions offered by Cantaloupe, while appealing, may not attract competitive bids from potential acquirers, thereby reducing the likelihood of a significant appreciation in its stock value. Furthermore, the expected smooth regulatory approval process for the acquisition further indicates a lack of upward momentum in the stock post-deal, leading to a cautious outlook on the company's future performance.