Innodata Inc. (NASDAQ:INOD) shares are trading higher on Monday after BWS Financial upgraded the stock from a Buy rating to a Top Pick rating.
• Innodata stock is surging to new heights today. Why is INOD stock surging?
What To Know: According to Investing.com, BWS Financial upgraded Innodata to a Top Pick and set a price target of $110, representing a potential 90% upside from the current price of $57.95. The firm cited multiple revenue catalysts expected to materialize in 2026, with Innodata currently holding a market capitalization of approximately $1.85 billion.
BWS Financial said the upgrade reflects Innodata's strengthening position in the artificial intelligence landscape, where the company provides data set training services to large language model developers.
InvestingPro data shows Innodata generated revenue growth of 73.57% over the last 12 months, although the firm noted the company's valuation appears elevated relative to InvestingPro's Fair Value assessment.
BWS Financial analyst Hamed Khorsand said Innodata entered the fourth quarter of 2025 with a government contract expected to expand into a larger business opportunity in 2026, with more significant revenue benefits anticipated by the end of the year.
The firm also pointed to InvestingPro data showing analysts expected continued sales growth, with Innodata trading at a PEG ratio of 0.8 despite a price-to-earnings ratio of 52.19.
The research note addressed investor concerns around potential revenue declines, stating the use of data sets was more likely to expand as the AI landscape continues to evolve. BWS Financial also highlighted Innodata's recent business momentum, referencing the company's disclosure of $68 million in pre-training deals during its most recent earnings call.
In recent earnings news, Innodata reported third-quarter 2025 earnings per share of 24 cents, exceeding expectations of 14 cents. Despite the earnings beat, the stock declined during regular trading hours following the report.
INOD Price Action: Innodata shares closed Monday 17.02% higher at $62.01, according to data from Benzinga Pro.
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