In a report released yesterday, Lucky Schreiner from D.A. Davidson maintained a Hold rating on Domo, with a price target of $15.00.
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Lucky Schreiner has given his Hold rating due to a combination of factors influencing Domo’s current market position. The company’s recent earnings report showed a positive trend, with both revenue and subscription growth exceeding expectations. However, the billings were slightly below consensus, which tempers the overall optimism. The transition to a consumption pricing model is seen as a positive step, enhancing retention rates and expanding customer use cases, yet more substantial growth is needed to justify a more bullish stance.
Despite improvements in sales force productivity and operating margins, the overall growth outlook remains modest. The raised revenue guidance for FY26 indicates slight growth, but not enough to warrant a more aggressive rating. The valuation of Domo’s shares at approximately 2x CY26E revenue aligns with its growth peers, supporting the Hold recommendation. Schreiner’s decision reflects a cautious approach, acknowledging the positive developments while remaining mindful of the challenges that lie ahead.
According to TipRanks, Schreiner is an analyst with an average return of -14.4% and a 13.33% success rate. Schreiner covers the Technology sector, focusing on stocks such as C3ai, Progress Software, and Box.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $16.50 price target.