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.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Derrick Wood has given his Buy rating due to a combination of factors that indicate a positive outlook for Domo. The company is showing signs of turning the corner on its major initiatives, particularly the shift to consumption pricing and strategic partnerships with companies like CDW. These efforts are expected to lead to sustained growth acceleration, as evidenced by the anticipated increase in billings.
Domo’s recent performance has been strong, with notable growth in subscription revenue and net new annual contract value. The company’s strategic positioning in the data management and analytics space, especially as enterprises prepare for AI adoption, adds to its attractiveness. Additionally, Domo’s shares are currently trading at a relatively low valuation, offering significant potential for re-rating if growth drivers continue to strengthen. Wood’s confidence is further supported by positive field checks and survey results, which suggest upside potential in margins and growth estimates.
According to TipRanks, Wood is a 4-star analyst with an average return of 6.0% and a 47.98% success rate. Wood covers the Technology sector, focusing on stocks such as Oracle, Adobe, and Salesforce.