J.P. Morgan analyst Alexei Gogolev downgraded the rating on CCC Intelligent Solutions Holdings (CCCS – Research Report) to a Hold yesterday, setting a price target of $11.00.
Alexei Gogolev has given his Hold rating due to a combination of factors impacting CCC Intelligent Solutions Holdings. The company is experiencing a slowdown in organic revenue growth, with projections for FY25E at approximately 7%, marking the slowest pace in four years. This deceleration has raised concerns about the company’s growth potential and market penetration. Additionally, recent management changes, including the appointment of Tim Welsh, suggest efforts to revitalize the company’s go-to-market strategy.
Despite these challenges, CCCS maintains a strong position in the digitization of the Automotive and Casualty P&C segments of insurance. However, claim volumes are expected to continue declining in 2025, which could hinder potential growth. The stock is currently trading in line with other SaaS companies with similar revenue growth and margin profiles. Consequently, the long-term growth outlook for CCCS has been adjusted, resulting in a 20% reduction in the price target to $11 per share.
In another report released on February 24, Barclays also maintained a Hold rating on the stock with a $13.00 price target.
Based on the recent corporate insider activity of 101 insiders, corporate insider sentiment is neutral on the stock.