GCT Stock Surges Ahead of Q3 Results, Analysts See Undervaluation
GigaCloud Technology Inc. (NASDAQ: GCT) is set to release its third quarter 2025 results, with analysts divided due to management's guidance on gross profit margin and sales. Despite this, GCT stock has surged by approximately 130% since late March 2025, driven by strong Q1 and Q2 earnings.
GCT's forward EV/EBITDA ratio stands at less than 8.4x, and its forward price-to-earnings ratio is around 8.3x, suggesting undervaluation to some analysts. The company's European expansion and integration of Noble House are expected to bolster its resilience against tariffs and supply chain disruptions. Management anticipates a 2.5% hit to its gross profit margin in Q3 2025 but plans to mitigate this through strategic price increases and supply chain adaptability.
Initially rated 'Hold' in 2023 due to underestimation of its business model, GCT has since proven its mettle. The company's GigaCloud Marketplace recorded a GMV of $1.44 billion in Q2 2025, up 31% year-over-year, with an active buyer base growth of about 51% to approximately 11,000. GCT's Q2 2025 earnings report was a significant beat, with total sales of $322.6 million (up 3.8% YoY) and non-GAAP EPS of $1.14 (+40% YoY). The company's growth rates have accelerated since its supply-chain business model began to scale, lasting for multiple quarters before a macro-driven slowdown in 2025.
An analyst has set a price target of $34.63 per share for GCT, representing a 27.42% increase from the current price, based on a 15% premium on the FY2026 EPS consensus and a 9-10x multiple. Despite management's guidance for a hit to its gross profit margin in Q3 2025, GCT's strong performance and resilience make it an attractive investment opportunity.
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