CCC Intelligent Solutions Holdings (CCCS) has received a new Buy rating, initiated by Bank of America Securities analyst, Michael Funk.
Michael Funk has given his Buy rating due to a combination of factors that highlight CCC Intelligent Solutions Holdings’ potential for future growth. Despite the company’s recent organic revenue growth being at the lower end of its long-term framework, the emerging AI offerings are expected to contribute significantly to revenue once customers complete their change management processes. The positive feedback on return on investment and utilization from early adopters suggests that an increase in revenue from these solutions is imminent.
Furthermore, CCCS reported solid fourth-quarter results with total revenue exceeding projections, and the company has set optimistic guidance for 2025. Although there is some pressure on margins due to the EvolutionIQ acquisition, the anticipated revenue from this acquisition has led to an increase in revenue estimates for the coming years. The revised price objective of $14 reflects these growth prospects, despite a reduction in the valuation multiple due to slower organic growth. Overall, the potential for an inflection in growth from emerging solutions supports the Buy rating.
In another report released on February 27, Barrington also maintained a Buy rating on the stock with a $14.00 price target.
CCCS’s price has also changed slightly for the past six months – from $10.740 to $10.190, which is a -5.12% drop .