VerifyMe, Inc. (VRME) Stock Forecast & Price Target

VerifyMe Inc. has demonstrated a positive trajectory in its Precision Logistics segment, achieving a 7% increase in new customer acquisition, significantly improving gross margins by approximately 940 basis points compared to the previous year. The company is focused on driving growth, with long-term financial aspirations of generating annual revenues between $50 million and $60 million over the next five years, supported by double-digit growth expectations from both segments. While the FY/24 outlook has been adjusted to anticipate mid-single-digit revenue growth, management's commitment to expanding sales efforts and addressing gross margin challenges suggests a proactive approach to sustaining overall positive financial momentum.

VerifyMe Inc has reduced its revenue guidance for FY/24 from mid-single digit growth expectations to approximately flat, primarily due to a 9% decline in shipments to existing customers within its proactive business line. Additionally, general and administrative expenses rose to 45% of revenue, exceeding previous estimates of 42%, further complicating the company's financial outlook. Compounding these challenges, VerifyMe has lost a significant premium services relationship, potentially impacting annual revenue by over $2 million, and has pushed back its long-term revenue and EBITDA margin targets by at least a year.