Bank of America Securities analyst Koji Ikeda reiterated a Sell rating on BigCommerce Holdings (BIGC – Research Report) yesterday and set a price target of $5.00.
Koji Ikeda has given his Sell rating due to a combination of factors impacting BigCommerce Holdings. The company reported mixed results for the first quarter of 2025, with revenue slightly missing expectations while non-GAAP operating income exceeded them. Although the revenue guidance range was widened, indicating some level of uncertainty, the high end of the guidance was raised, suggesting potential for improved execution. However, internal changes aimed at driving growth may take time to materialize, especially with external risks such as tariffs.
Despite some positive developments, such as an increase in average revenue per account and a unified strategy across its core businesses, challenges remain. The annual recurring revenue growth has decelerated, and there has been a consistent decline in the enterprise customer count. These factors contribute to the stock trading at a discount compared to its peers, justified by its slower growth and lower free cash flow margin. Consequently, Ikeda maintains a cautious outlook, reiterating an Underperform rating with a price objective of $5.
In another report released today, Barclays also maintained a Sell rating on the stock with a $6.00 price target.
BIGC’s price has also changed moderately for the past six months – from $6.230 to $5.235, which is a -15.97% drop .