Analyst Derrick Wood of TD Cowen maintained a Hold rating on Domo (DOMO – Research Report), retaining the price target of $9.00.
Derrick Wood has given his Hold rating due to a combination of factors that influence Domo’s current and future performance. The company has outlined several growth initiatives for FY26, including increased adoption of its platform driven by consumption and AI readiness, the introduction of new AI-centric solutions, and a focus on multi-year deals. These initiatives are promising, yet their full impact is expected to materialize in FY27, suggesting that the stock may remain stable in the near term.
Derrick Wood also notes the importance of Domo’s ecosystem opportunities, particularly with cloud data warehouse partners, which could drive future growth. The transition to a consumption-based model is progressing, with a significant portion of annual recurring revenue already on this model. However, despite these positive developments, the revenue growth outlook remains unchanged at -1% for FY26. The current valuation of the stock is near trough levels, and while there is potential for improvement, more progress is needed to justify an upgrade in the stock rating. Therefore, a Hold rating is maintained with a price target of $9.
In another report released on March 13, Morgan Stanley also maintained a Hold rating on the stock with a $9.00 price target.