AvidXChange Holdings Inc (NASDAQ:AVDX) provides accounts payable (AP) automation software and payment solutions for middle market businesses and suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and cash flow manager that provides cash management solutions. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company markets its solutions through direct salesforces; strategic channel partnerships; and software and technology business partners. It serves real estate, homeowners associations, construction, financial services, healthcare facilities, social services, education, and media sectors. The company was founded in 2000 and is headquartered in Charlotte, North Carolina.
AvidXChange is an accounts payable service offering an automated AP technology. Customers find enhanced flexibility, security, and efficiency, to issue and approve invoiced, and make and receive payments, anytime, anywhere. AvidXChange’s products include invoice, bill payment, and purchase automation, along with utility bill payment. The system is scalable to grow with the customer, and includes remote access and fraud protections. It is actively working to expand its services and its customer base. Early this month, the company announced expanded availability of its AvidSuite for Financial Services – which is now available to credit unions.
Analyst Will Nance initiated coverage of this stock for Goldman Sachs, and took a bullish stance, writing: “We believe AVDX is well positioned to take share in the largely unpenetrated $26bn total addressable market (TAM) for middle market AP automation, driving a very long duration growth profile with longer-term optionality for an inflection in automation adoption in its target market. In addition, we believe Avid should see strong growth in payments revenue over time… Lastly, we see intermediate- and longer-term opportunities to increase monetization through supplier-oriented products such as its Invoice accelerator product, as well through as rolling out support for cross-border payments.” He specified with a Buy rating and $40 price target.
With 8 positive analyst reviews on record since going public, AVDX stock has a unanimous Strong Buy consensus rating. The shares has a $30.50 average price target. This is the best stock to purchase and hold for the future.