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On Thursday, Cantor Fitzgerald analyst Yi Fu Lee increased the price target for DOMO shares (NASDAQ:DOMO) to $12 from the previous target of $11, while reiterating an Overweight rating. Currently trading at $8.55, DOMO appears undervalued according to InvestingPro analysis, with the stock showing impressive YTD returns of nearly 21%. The adjustment reflects a positive outlook on the company’s financial performance and strategic partnerships that are translating into tangible revenue.
DOMO’s recent quarterly results have surpassed FactSet consensus expectations across several key metrics, including billings, revenue, operating income and margin, and free cash flow and margin. With annual revenue of $317 million and a gross profit margin of 74.5%, the company demonstrates strong operational efficiency. This performance is attributed to the company’s effective monetization of deals stemming from strategic partnerships. InvestingPro subscribers can access detailed financial analysis and 5+ additional ProTips about DOMO’s performance metrics.
The momentum behind DOMO’s success was evident at the Domopalooza conference held in March, where the company showcased its rapid business growth. The event highlighted that the sales team’s productivity has surged by 60% year-over-year, driven by robust Cloud Data Warehouse (CDW (NASDAQ:CDW)) partner-sourced deal activities.
Furthermore, the company’s Agent Catalyst product is reportedly experiencing strong customer engagement, with live use-case deployments being executed in a matter of hours or minutes. This indicates a high level of efficiency and customer satisfaction with DOMO’s offerings.
The analyst’s commentary underscores the significance of DOMO’s strategic partnerships in driving the company’s growth. With deals facilitated by these partnerships successfully reaching completion, DOMO has demonstrated a solid start to the fiscal year 2026.
In summary, DOMO’s financial results and the success of its partner ecosystem have led Cantor Fitzgerald to express confidence in the company’s growth trajectory and market position, as reflected in the raised price target and sustained Overweight rating. With an overall Financial Health score of "FAIR" from InvestingPro, investors can access comprehensive analysis, including a detailed Pro Research Report that provides actionable insights into DOMO’s valuation and growth prospects.
In other recent news, Domo Inc . has reported a notable performance in its first-quarter fiscal year 2026 results. The company exceeded revenue expectations with earnings of $80.1 million, surpassing the anticipated $77.9 million, and reported a non-GAAP EPS of ($0.09), which was better than the consensus estimate of ($0.20). This performance has led to DA Davidson raising its price target for Domo shares to $9.00, up from $8.00, while maintaining a Neutral rating. Additionally, Citizens JMP reaffirmed its Market Outperform rating and maintained a $16.00 price target, reflecting optimism about the company’s financial results.
Domo’s recent achievements include a positive operating margin for the first time and positive adjusted free cash flow, indicating improved operating leverage. The company’s subscription revenue was reported at $71.4 million, slightly above expectations, although it showed a 1% decline from the previous year. Domo’s long-term subscription Remaining Performance Obligations (RPO) saw significant growth of 24%, up from 14% in the last quarter, showcasing strong future commitments from customers.
Furthermore, Domo launched new AI-driven workflow automation tools and improved cloud data integrations, which have contributed to a 60% increase in sales productivity. The company also transitioned to a consumption-based pricing model, which has been well-received and is expected to drive further growth. These developments have generated positive sentiment among investors and analysts, with Domo’s management expected to provide further insights at DA Davidson’s upcoming Technology Conference.
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