Strong Growth Prospects and Attractive Valuation Justify Buy Rating for Research Solutions

Tip Ranks
2025.11.15 12:35
portai
I'm PortAI, I can summarize articles.

Maxim Group analyst Allen Klee reiterated a Buy rating on Research Solutions (RSSS) stock, citing strong growth in the high-margin Platforms segment, strategic initiatives like new AI offerings and the acquisition of Scite, and solid financial health with $12M in cash and no debt. The stock's attractive valuation and positive outlook, despite challenges in the Transactions segment, support a 12-month price target of $6.00. Roth MKM also reiterated a Buy rating with a $5.00 price target.

Maxim Group analyst Allen Klee has reiterated their bullish stance on RSSS stock, giving a Buy rating yesterday.

Meet Your ETF AI Analyst

  • Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
  • Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.

Allen Klee has given his Buy rating due to a combination of factors including the strong performance of Research Solutions’ high-margin Platforms segment, which has shown significant growth in annual recurring revenue (ARR) and gross profits. The company’s strategic initiatives, such as the introduction of new AI offerings and the acquisition of Scite, are expected to drive future growth. Furthermore, the company’s financial health is solid, with $12.0M in cash, no debt, and projections for positive free cash flow, indicating a strong capacity to support organic growth.
Additionally, the valuation of Research Solutions’ stock appears attractive, trading at an EV/revenue multiple lower than its peer group average. The company’s focus on expanding its sales force and improving sales strategies has resulted in the signing of multiple large deals, contributing to a positive outlook. Despite challenges in the Transactions segment, the overall business model remains robust, supporting the Buy rating and a 12-month price target of $6.00.

In another report released yesterday, Roth MKM also reiterated a Buy rating on the stock with a $5.00 price target.

Source: Tip Ranks The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
© 2025 Longbridge｜Disclaimer