TD Cowen Downgrades Cellebrite (CLBT) Citing Market Contraction Despite Strong Recurring Revenue Growth

Cellebrite DI Ltd. (NASDAQ:CLBT) is one of the best growth stocks to buy for the next 20 years. On February 12, following the company’s solid Q4 2025 results, TD Cowen lowered its price target on Cellebrite to $23 from $25 and maintained a Buy rating. The firm cited market contraction as the reason for the reduction, despite the company reporting 21% growth in both annual recurring revenue and subscription revenue alongside a positive outlook for 2026.

On the same day, Needham also lowered its price target on Cellebrite DI Ltd. (NASDAQ:CLBT) to $18 from $24 while maintaining a Buy rating. This announcement was made following the company’s strong Q4 2025 earnings performance.

The company’s total ARR (Annual Recurring Revenue) grew 21% year-over-year to $481 million, supported by the acquisition of Corellium and high adoption of its Inseyets platform. The firm noted that management’s 2026 outlook, which projects ARR reaching up to $573 million, aligns with previous goals for an ARR re-acceleration, signaling high conviction in the company’s growth trajectory despite broader market valuation adjustments.

Cellebrite DI Ltd. (NASDAQ:CLBT) develops solutions for legally sanctioned investigations in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific.

While we acknowledge the potential of CLBT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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