Needham analyst Scott Berg maintained a Buy rating on BigCommerce Holdings today and set a price target of $10.00.
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Scott Berg’s rating is based on several compelling factors that highlight BigCommerce Holdings’ potential for growth. The company has shown a modest improvement in its second-quarter estimates, reflecting a better grasp on its growth and sales forecasts, largely due to significant changes in its go-to-market strategies. Additionally, BigCommerce has introduced a new parent brand, Commerce.com, which aims to streamline its marketing efforts and align with a broader e-commerce strategy.
Furthermore, while sales remain stable, the company has seen a 6% year-over-year growth in Enterprise Annual Recurring Revenue (ARR), indicating a consistent performance over the past quarters. Although Retail ARR has decreased by 7% year-over-year, the focus on enterprise clients is evident with a 9% growth in Enterprise Average Revenue Per Account (ARPA). This suggests success in targeting higher market segments. The company’s strategic positioning for AI-driven commerce search and sales further underscores its potential for future growth.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $8.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BIGC in relation to earlier this year.