Domo, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Derrick Wood from TD Cowen reiterated a Buy rating on the stock and has a $21.00 price target.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight Domo’s strong growth potential and strategic initiatives. The company is leveraging its partner ecosystem, particularly with Snowflake, to enhance its involvement in global data strategies and drive efficient pipeline generation. Additionally, Domo’s shift to consumption pricing has facilitated more viral user adoption and reduced sales friction, which is expected to lead to stronger business retention and growth.
Domo’s management is optimistic about growth acceleration in the latter half of FY27, supported by robust AI spending trends that are increasing demand for its services. The company’s focus on capturing AI spend and introducing new services like the Agent Catalyst offering is expected to open new revenue streams. With attractive valuations at 2.0x EV/CY26E Sales and a strategic focus on improving billing growth and retention rates, Wood reiterates a Buy rating with a price target of $21.