Lake Street Raises Evolv Technologies (EVLV) Price Target to $5.5

Evolv Technologies Holding Inc. (NASDAQ:EVLV) is one of the best small cap AI stocks to buy according to analysts. Earlier in May, Lake Street increased its price target for Evolv Technologies to $5.5, up from its previous target of $4, while maintaining a Hold rating on the shares. This followed Evolv’s Q1 2025 earnings report. The firm noted fewer headwinds in the business.

For Q1, Evolv reported a 44% year-over-year increase in revenue, which reached $32 million. Annual Recurring Revenue grew by 34% year-over-year, reaching $106 million, which showed subscription growth. Evolv successfully retained 92% of eligible education customers and 90% of deployed units.

A security officer in front of a bank vault, representing the companies secure transportation services.

However, the notable shift towards more pure subscription orders; while beneficial for ARR, may result in less upfront revenue recognition. Evolv’s market penetration is still in early stages, with its technology deployed in only about 1% of US school buildings and low single-digit percentages in hospitals and healthcare facilities.

Evolv Technologies Holding Inc. (NASDAQ:EVLV) provides AI-based weapons detection for security screening in the US and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.