Lake Street raises Evolv Technologies (EVLV) price target to $5.5

Evolv Technologies Holding Inc. (NASDAQ:euglv) is one of According to analysts, the best small cap AI stock to buy. In early May, Lake Street raised its Evolv Technologies price target to $5.5, up from its previous target of $4, maintaining its stock hold valuation. This followed Evolv’s first quarter 2025 revenue report. The company noted that there is less headwind in the business.

For the first quarter, Evolv reported a 44% increase in revenue from the previous year, reaching $32 million. Annual recurring revenues rose 34% year-on-year to $106 million, indicating subscription growth. Evolv successfully retained 92% of eligible educational clients and 90% of deployment units.

A security guard in front of the bank vault.

However, a notable shift towards purer subscription orders. ARRs are beneficial, but as a result, you could potentially pay less advances in revenue. Evolv’s market penetration is still in its early stages, with its technology being deployed at just a low percentage of US school buildings and a single digit percentage of hospitals and medical facilities.

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

Although we acknowledge the potential of EVLV as an investment, we believe certain AI stocks offer a greater reverse chance, pose a risk of decline. If you’re looking for a highly undervalued AI stock that can make a significant profit from the tariff and supervision trends of the Trump era, check out our free report. Best Short-Term AI Stocks.

Read next: 30 stocks that double in three years and 11 Hidden AI Strains Buy Now.

Disclosure: None. This article was originally published Insider Monkey.