In a report released yesterday, Koji Ikeda from Bank of America Securities maintained a Sell rating on BigCommerce Holdings (BIGC – Research Report), with a price target of $6.00.
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Koji Ikeda’s rating is based on a combination of factors that suggest caution regarding BigCommerce Holdings’ stock. Despite the company’s strategic plans to reaccelerate growth through improved go-to-market strategies and medium-term growth targets, the stock is currently underperforming. The company’s shares may continue to lag behind its small-cap peers until it achieves a higher revenue growth profile, which is currently in the mid-single digits.
Additionally, while BigCommerce is working on its own payments offering, which could enhance monetization, there is no confirmed launch date, adding uncertainty to its potential impact. The company’s valuation is currently discounted compared to its peers, which may limit downside risk, but the overall outlook remains cautious until the company demonstrates more substantial growth and profitability improvements.
In another report released today, Barclays also maintained a Sell rating on the stock with a $7.00 price target.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BIGC in relation to earlier this year.