Cantor maintains DOMO stock at Overweight, $11 price target

Thursday’s affirmation by Cantor Fitzgerald analysts keeps DOMO stock (NASDAQ:DOMO) at an Overweight rating with an unchanged price target of $11.00. Currently trading at $8.27, the stock shows potential upside according to InvestingPro Fair Value calculations, with analyst targets ranging from $8 to $16. The endorsement comes after the firm’s attendance at the Domopalooza AI + Data Conference, which took place from March 18-21 in Salt Lake City, Utah. The event featured a full suite of management from DOMO, including Founder and CEO Josh James, CFO Tod Crane, CRO RJ Tracy, and Chief Design Officer Chris Willis, amongst other leaders and engineers.

The analysts highlighted the timing of Domopalooza 2025, noting it followed a strong finish for the company’s fiscal year 2025 and DOMO’s participation in Cantor’s Global Tech Conference. The presence of Shaquille O’Neal as a special guest at the conference underscored its significance as a leading future data and AI event. The analysts reported leaving the event with a positive impression of DOMO’s comprehensive ecosystem of partners, who are actively collaborating to secure deals, outpace competitors, and finalize transactions.

Following DOMO’s earnings beat on March 6, the company anticipates being free cash flow positive for both the first quarter of fiscal year 2026 and the entire fiscal year. With a market cap of $323 million and an overall Financial Health score of "FAIR" according to InvestingPro, the company faces challenges with profitability, reporting a -$50.87 million EBITDA in the last twelve months. Analysts noted that the company’s current focus is on go-to-market execution without the need for near-term financing. Despite receiving a financial update earlier in March, Cantor Fitzgerald did not adjust their financial projections after the conference. They emphasized the importance of staying attentive to market checks and technological innovations.

At Domopalooza 2025, updates were provided on the strength of DOMO’s partner ecosystem, which is contributing to robust pipeline-building activities. Additionally, the company introduced Agent Catalyst, a platform that enables developers to create an AI agent comprehensively. Since its announcement on March 19, DOMO has garnered interest from over 200 customers for Agent Catalyst. For deeper insights into DOMO’s financial health, growth prospects, and detailed company analysis, access the comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, Domo, Inc. reported its fourth-quarter fiscal year 2025 results, surpassing expectations with a non-GAAP EPS of ($0.05) compared to the consensus estimate of ($0.16), and revenue of $78.8 million, slightly above the forecasted $78.0 million. The company’s subscription revenue was $71.9 million, aligning with expectations, while billings reached $102.6 million, exceeding the consensus of $101.2 million. Despite a 2% year-over-year decline in revenue, Domo’s long-term subscription Remaining Performance Obligations (RPO) grew by 38%, with current RPO increasing by 14%, marking the strongest growth in over two years. In other developments, Domo appointed Mark Maughan as its new chief operating officer, effective immediately. Additionally, the company elected Ryan Wright and David Jolley as new directors, with Jolley resigning from his employee position.

Analysts have varied perspectives on Domo’s stock, with Cantor Fitzgerald maintaining an Overweight rating and a price target of $11, emphasizing the company’s strong finish to Fiscal Year 2025. In contrast, DA Davidson initiated coverage with a Neutral rating and lowered the price target to $8, citing concerns over revenue deceleration. Meanwhile, JMP Securities reiterated a Market Outperform rating with a $16 price target, highlighting the positive reception of the company’s earnings results.

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