Despite presenting a mixed financial picture, Asure Software is capturing significant analyst optimism for its future trajectory. The cloud-based human capital management specialist is experiencing a notable sentiment shift, driven not by current performance but by substantial growth expectations. Market experts highlight a considerable gap between the stock’s present valuation and their projected price targets.
The recent strategic acquisition of Lathem Time Corporation appears to be a pivotal move. Management used their July quarterly presentation to substantially upgrade their annual guidance, raising it from the previous $134-138 million range to $138-142 million. This confident forecast revision, coming immediately after finalizing the acquisition, overshadowed disappointing Q2 results and propelled the stock upward by 8% in after-hours trading following the announcement.
This optimism is reflected in concrete analyst actions. Multiple firms reaffirmed their buy recommendations on Friday, with several establishing price targets reaching as high as $15. This represents potential appreciation of nearly 70% from current trading levels. Even more conservative estimates remain significantly above $13, suggesting widespread belief that the market is undervaluing Asure’s long-term growth narrative.
Should investors sell immediately? Or is it worth buying Asure Software?
Institutional investors are demonstrating substantial confidence through increased positions. During the last quarter, these major market participants boosted their ownership in Asure by over 36%, now controlling more than 70% of outstanding shares. This strong institutional backing, maintained despite current GAAP losses, indicates deep conviction in the company’s turnaround strategy. Management anticipates achieving GAAP profitability by the fourth quarter of 2025.
The coming weeks present critical opportunities for Asure to validate this optimism. Company leadership is scheduled to participate in two investor conferences in mid-September, providing platforms to elaborate on their strategic vision and reinforce market confidence. For investors who believe in the cloud HCM growth story, Asure represents one of the market’s most compelling opportunities.
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