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Why Innodata Stock Is Soaring After BWS Financial's Bold Upgrade

MarketDash Editorial Team
3 days ago
Innodata shares jumped over 17% Monday after BWS Financial elevated the stock to Top Pick status with a $110 price target, citing the company's growing role in AI data training and multiple revenue catalysts expected to hit in 2026.

Innodata Inc. (INOD) shares surged Monday after BWS Financial gave the stock a meaningful vote of confidence, upgrading it from Buy to Top Pick status. That's the kind of move that gets investor attention.

What's Behind The Upgrade

BWS Financial set a price target of $110 for Innodata, which represents roughly 90% upside from the stock's previous close of $57.95. The firm's bullish stance centers on the company's positioning in the artificial intelligence ecosystem, where it provides data set training services to developers building large language models. With a current market cap around $1.85 billion, Innodata has been riding the AI wave impressively, posting revenue growth of 73.57% over the past 12 months according to InvestingPro data.

Analyst Hamed Khorsand highlighted several catalysts on the horizon. The company entered Q4 2025 with a government contract that's expected to blossom into a larger opportunity throughout 2026, with more substantial revenue benefits anticipated by year-end. During its most recent earnings call, Innodata disclosed $68 million in pre-training deals, signaling solid business momentum.

The Valuation Question

Here's where it gets interesting. The stock trades at a price-to-earnings ratio of 52.19, which sounds steep until you look at the PEG ratio of 0.8, suggesting growth might justify the premium. InvestingPro notes the valuation appears elevated relative to fair value assessments, but BWS Financial thinks the growth story outweighs valuation concerns.

The firm also pushed back on worries about potential revenue declines, arguing that demand for data sets should actually expand as the AI landscape continues evolving. That makes sense when you consider how hungry these large language models are for training data.

Recent Performance

Innodata recently reported third-quarter 2025 earnings per share of 24 cents, handily beating expectations of 14 cents. Oddly enough, the stock actually declined during regular trading after that earnings beat, which might explain why Monday's upgrade sparked such a strong rally.

Price Movement: Innodata shares closed Monday up 17.02% at $62.01.

Back to Stock Market News

Why Innodata Stock Is Soaring After BWS Financial's Bold Upgrade

MarketDash Editorial Team
3 days ago
Innodata shares jumped over 17% Monday after BWS Financial elevated the stock to Top Pick status with a $110 price target, citing the company's growing role in AI data training and multiple revenue catalysts expected to hit in 2026.

Innodata Inc. (INOD) shares surged Monday after BWS Financial gave the stock a meaningful vote of confidence, upgrading it from Buy to Top Pick status. That's the kind of move that gets investor attention.

What's Behind The Upgrade

BWS Financial set a price target of $110 for Innodata, which represents roughly 90% upside from the stock's previous close of $57.95. The firm's bullish stance centers on the company's positioning in the artificial intelligence ecosystem, where it provides data set training services to developers building large language models. With a current market cap around $1.85 billion, Innodata has been riding the AI wave impressively, posting revenue growth of 73.57% over the past 12 months according to InvestingPro data.

Analyst Hamed Khorsand highlighted several catalysts on the horizon. The company entered Q4 2025 with a government contract that's expected to blossom into a larger opportunity throughout 2026, with more substantial revenue benefits anticipated by year-end. During its most recent earnings call, Innodata disclosed $68 million in pre-training deals, signaling solid business momentum.

The Valuation Question

Here's where it gets interesting. The stock trades at a price-to-earnings ratio of 52.19, which sounds steep until you look at the PEG ratio of 0.8, suggesting growth might justify the premium. InvestingPro notes the valuation appears elevated relative to fair value assessments, but BWS Financial thinks the growth story outweighs valuation concerns.

The firm also pushed back on worries about potential revenue declines, arguing that demand for data sets should actually expand as the AI landscape continues evolving. That makes sense when you consider how hungry these large language models are for training data.

Recent Performance

Innodata recently reported third-quarter 2025 earnings per share of 24 cents, handily beating expectations of 14 cents. Oddly enough, the stock actually declined during regular trading after that earnings beat, which might explain why Monday's upgrade sparked such a strong rally.

Price Movement: Innodata shares closed Monday up 17.02% at $62.01.