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On Wednesday, Cantor Fitzgerald analyst Yi Fu Lee increased the price target for DOMO (NASDAQ: DOMO) shares, raising it to $17.00 from the previous $12.00, while reiterating an Overweight rating on the stock. The adjustment follows a thorough review of the company’s first-quarter financials for the fiscal year 2026. The stock has shown remarkable momentum, with a 50% surge in the past week alone and is currently trading near its 52-week high of $13.00. InvestingPro data reveals the stock has delivered an impressive 80% return over the past year.
In a detailed investment summary, Lee highlighted that the new price target, which is the highest on Wall Street, is backed by comprehensive analysis. This includes benchmarking Domo’s Remaining Performance Obligations (RPO) to Annual Recurring Revenue (ARR) ratio against other leading SaaS/software companies, where Domo ranks highly. Additionally, the analyst pointed to market disruption stemming from a takeover offer for peer Informatica (INFA, N; covered by Tom Blakey), as well as positive trends in management and investor discussions indicating momentum for Domo. According to InvestingPro, three analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s prospects.
Lee’s confidence in the revised target is further bolstered by Domo’s recent performance. Last week, on May 21, the company reported a strong start to the first quarter of fiscal year 2026, surpassing FactSet consensus expectations in various key financial metrics, including billings, revenue, operating income and margin, and free cash flow and margin.
The success of Domo in the recent quarter is attributed to effective pipeline building through partner ecosystem-led initiatives such as Domopalooza. These efforts have been instrumental in securing deals, contributing to the company’s positive trajectory as observed in the first quarter of fiscal year 2026.
The raised price target reflects Cantor Fitzgerald’s belief in Domo’s continued growth and its ability to maintain a leading position among top-tier SaaS/software companies. The firm’s analysis suggests that Domo is well-positioned to capitalize on its strong start to the year and the momentum built from its strategic initiatives. With a robust gross profit margin of 74.5% and a market capitalization of approximately $518 million, Domo shows promising fundamentals despite current profitability challenges. For deeper insights into Domo’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of over 30 key metrics and expert recommendations.
In other recent news, Domo Inc (NASDAQ:DOMO). has been at the center of several notable developments. The company reported first-quarter revenue of $80.1 million, surpassing the expected $77.9 million, although the subscription revenue saw a slight decline of 1% from the previous year. Despite a net loss per share of $0.09, which was better than the anticipated $0.20 loss, Domo achieved a positive operating margin for the first time. This achievement was highlighted by DA Davidson, who raised the price target for Domo to $9.00, citing the company’s impressive performance and upward revision of full-year guidance for revenue and earnings.
Cantor Fitzgerald also revised its price target for Domo to $12, reflecting confidence in the company’s strategic partnerships and financial performance. The firm noted that Domo’s recent quarterly results exceeded expectations in billings, revenue, operating income, and free cash flow. Additionally, Lake Street Capital Markets adjusted its price target to $9.00, acknowledging improved sales force productivity and a gross Annual Contract Value retention rate of 86%.
Domo’s shift to a consumption-based pricing model, which now accounts for over 70% of its Annual Recurring Revenue, has been a significant driver of its recent success. The company plans to increase this to nearly 90% by the end of the year. Citizens JMP maintained a $16 price target, expressing optimism about Domo’s growth trajectory and market position. These developments underscore Domo’s strategic advancements and robust financial performance, drawing increased attention from the investment community.
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