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Cautious Optimism: Hold Rating on Amplitude Amid Strategic Acquisition of Kraftful

Cautious Optimism: Hold Rating on Amplitude Amid Strategic Acquisition of Kraftful

Morgan Stanley analyst Elizabeth Porter maintained a Hold rating on Amplitude yesterday and set a price target of $12.00.

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Elizabeth Porter has given her Hold rating due to a combination of factors surrounding Amplitude’s recent acquisition of Kraftful. The acquisition is seen as a strategic move to enhance Amplitude’s capabilities by integrating structured and unstructured user feedback data, which could potentially improve product insights and customer engagement. However, the acquisition is primarily focused on technology and team integration rather than expanding the customer base, which suggests a cautious approach to immediate revenue growth.
While the acquisition is viewed positively for its potential to expand Amplitude’s product offerings and improve retention, the current market valuation of Amplitude’s shares is in line with its peers. This valuation, combined with the need for more evidence of revenue acceleration and margin expansion, leads to a Hold rating. The outlook remains optimistic for incremental growth as new product initiatives are expected to gain traction, but more concrete signs of financial improvement are awaited before a more favorable rating is considered.

Porter covers the Technology sector, focusing on stocks such as Autodesk, Wix, and Amplitude. According to TipRanks, Porter has an average return of -2.2% and a 48.24% success rate on recommended stocks.

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