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Investing.com - Barclays (LON:BARC) downgraded Intapp , Inc (NASDAQ:INTA) from Equalweight to Underweight on Monday, while lowering its price target to $44.00 from $60.00. The stock, which has declined over 30% year-to-date according to InvestingPro data, is currently showing oversold conditions based on RSI indicators.
The downgrade comes as Barclays expects Intapp’s organic annual recurring revenue (ARR) growth to continue trending below 20% and potentially into the teens next year, marking a significant slowdown from previous years’ performance. Current revenue growth stands at 17.7%, with InvestingPro analysis showing strong gross margins of 73.6%.
Barclays also anticipates Intapp will phase out multi-year on-premises subscription contracts, which currently provide higher upfront revenue recognition and margins due to ASC-606 accounting standards, potentially leading to lower-than-consensus guidance on fiscal year 2026 income statement metrics.
The investment bank noted that while the transition away from on-premises solutions is not fundamentally negative—a common evolution in Software-as-a-Service (SaaS) companies—Intapp’s lack of forward visibility on ARR growth compounds concerns about slowing growth rates.
Barclays has shifted to an enterprise value to free cash flow (EV/FCF) based valuation model, with the new $44 price target representing 22 times calendar year 2026 EV/FCF, reflecting adjusted expectations following Intapp’s acquisition of Termsheet in late April, which could add an estimated $7-10 million in acquired ARR.
In other recent news, Intapp has experienced several notable developments. Citi analysts have raised their price target for Intapp to $66 from $62, maintaining a Neutral rating. This adjustment comes after Intapp’s recent earnings report, which showed solid Annual Recurring Revenue growth driven by cloud offerings but only a modest beat on top-line revenue and a miss in billings. Meanwhile, Stifel has lowered its price target for Intapp to $60 from $65, maintaining a Buy rating due to revised estimates for lower on-premise license revenue in fiscal year 2026 and beyond. Despite this, Stifel remains confident in Intapp’s long-term market positioning and the potential for artificial intelligence to drive expansion. Intapp has also announced a strategic collaboration with Snowflake (NYSE:SNOW), integrating its DealCloud platform with Snowflake’s AI Data Cloud to enhance deal management analytics. Furthermore, Intapp and MSCI have formed a strategic partnership to integrate MSCI’s private asset data into Intapp’s AI-powered platform, aimed at improving decision-making for private market professionals. These partnerships are expected to enhance Intapp’s offerings and provide clients with advanced data and analytics solutions.
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