Innodata Makes Progress in Federal Sector Push, Wedbush Says

MT Newswires Live01-22

Innodata (INOD) has met with early success in its move to become a trusted partner in the federal sector, an untapped market that has the potential to become a large revenue driver in 2026 and onwards, Wedbush said in a Wednesday note.

The company was awarded a prime contract position within the US Missile Defense Agency's Scalable Homeland Innovative Enterprise Layered Defense program, a "major validation moment" for Innodata, the report said.

The next step is for Innodata to win individual task orders against larger players, including established defense contractors, Wedbush analysts said.

"We believe that INOD is in a strong position to provide AI-driven defense modernization capabilities for the federal government with this revenue stream expected to become a material revenue generator in FY26," they said.

Wedbush kept its outperform rating and $90 price target.

Price: 61.27, Change: -0.35, Percent Change: -0.58

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