- JMP Securities repeats analyst Patrick Walravens EverCommerce inc EVCM with a market outperformance and a target price of $17.
- The revaluation reflects strongly 4Q22 results The stock is up 2% in the aftermarket after up ~20% year-to-date versus a ~9% gain for the Nasdaq.
- Guidance was below consensus for 1Q but in range for the year.
- Walravens likes EverCommerce. Despite many solutions across multiple industries, EverCommerce runs a relatively simple growth algorithm and customer movement.
- Second, over time, this business should generate consistent mid-teens revenue growth with increasing margins, especially once it weathers the cost structure of its IPO and the impact of its November 2021 acquisition of DrChrono.
- RBC capital Analyst Matthew Hedberg holds EverCommerce outperforming and raises price target to $12 from $11.
- Hedberg was pleased with the quarter’s outperformance and a consistent outlook, which indicates signs of stabilization in the marketing services solutions business after two weaker quarters and bolstered his confidence in execution.
- The analyst also liked the continued focus on profitable growth, with ongoing investments in critical areas like payments, which the company is bullish on while keeping a close eye on spending.
- The outlook was worded as cautious, reflecting some macroeconomic softness, although it appears to reflect stabilization versus an ongoing trend deterioration.
- The company remains active in buying back shares.
- Overall, Hedberg believes EverCommerce still faces a significant new customer and cross- and up-sell opportunity as it works to provide a system of promotional software and digitize the service economy.
- Price promotion: EVCM shares traded up 17.30% to $10.51 on the last check Thursday.
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