Bank of America just raised its EUR/USD forecast
On Friday, Citizens JMP’s analyst Patrick Walravens confirmed a Market Outperform rating for EverCommerce Inc (NASDAQ: EVCM) with a steady price target of $15.00. Currently trading at $8.95, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $11 to $15. Walravens expressed continued confidence in the company, citing its strategic simplification and the planned divestment of lower-quality revenue streams as positive steps.
EverCommerce’s decision to streamline its business resonates with broader trends observed among private equity-backed companies within the firm’s coverage universe. With a healthy current ratio of 1.81 and strong gross margins of 66.41%, the analyst believes that this simplification will help the company establish a more consistent pattern of exceeding financial expectations. Walravens noted that six out of seven earnings misses in the past 14 quarters could be attributed to the company’s Marketing Technology (MarTech) segment. The planned sale of MarTech assets, including a portion of subscription revenue, is expected to occur over the next 12 months, which should alleviate the drag on revenue growth and margins. InvestingPro subscribers can access 10+ additional insights about EVCM’s financial health and growth prospects.
The core business strategy of EverCommerce, which involves leading with vertical systems of action followed by cross-selling payment solutions, was also highlighted as an attractive business model. With revenue growing at 3.82% and a market capitalization of $1.64 billion, the analyst expressed optimism about the company’s future performance as it works to integrate and enhance the value of the more than 50 acquisitions made over the past six years, particularly during a period of slower growth.
Walravens’ reiteration of the Market Outperform rating reflects a belief in EverCommerce’s potential to improve its financial performance and market position. The analyst anticipates that the company’s strategic adjustments will become more evident and beneficial in the years ahead.
EverCommerce’s stock price target of $15.00 remains unchanged, as the company continues to execute its business model and strategic initiatives. The analyst’s positive outlook suggests confidence in the company’s direction and potential for future growth.
In other recent news, EverCommerce Inc. reported its fourth-quarter 2024 earnings, revealing a mixed financial performance. The company achieved revenue of $175 million, surpassing the forecast of $170.52 million, marking a 3.3% year-over-year increase. However, the earnings report showed a loss per share of $0.07, which was wider than the anticipated loss of $0.01. EverCommerce’s subscription and transaction revenue grew by 4.2% to $139 million, indicating strong demand for its services. The company also reported a full-year 2024 pro forma revenue growth of 5.7%, reaching $690.7 million. In terms of strategic movements, EverCommerce is actively seeking strategic alternatives for its marketing technology solutions, with expectations for a sale in 2025. The company continues to focus on AI-driven workflows and product integrations as part of its strategic priorities. Looking ahead, EverCommerce has set its Q1 2025 revenue guidance between $138 million and $141 million, with adjusted EBITDA projected to be between $39 million and $41 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.