Commerce.com stock rating reiterated by Canaccord, citing AI potential

Investing.com - Canaccord Genuity has reiterated its Buy rating on Commerce.com (NASDAQ:CMRC) with a price target of $11.00, according to a research note released Monday. The target represents significant upside from the current price of $4.85, with analyst targets ranging from $5 to $11.

The firm highlighted that CMRC shares are trading at approximately 1.2 times enterprise value to revenue based on 2026 estimates, which it considers inexpensive. While InvestingPro analysis suggests the stock is currently undervalued, Canaccord noted that valuation alone isn’t sufficient reason to purchase the stock. The company maintains strong fundamentals with a healthy current ratio of 2.13 and impressive gross margins of 78%.

Canaccord emphasized that Commerce.com’s core platform continues to address complex e-commerce challenges for both B2C and B2B businesses of various sizes. The firm specifically pointed to the company’s Feedonomics acquisition as a strategic asset for data orchestration as AI-driven commerce gains momentum.

The research note acknowledged that a "demonstrable re-acceleration in growth" would be necessary to improve stock performance, with current estimates projecting approximately 5% growth next year. Despite this modest growth outlook, Canaccord believes the "building blocks are all there" for future success.

Canaccord maintained its valuation-based Buy rating while indicating it would monitor how Commerce.com’s pipeline develops through the remainder of the year following what it described as "a busy H1."

In other recent news, Commerce, formerly known as BigCommerce, reported its Q2 2025 earnings with revenue slightly exceeding expectations at $84.4 million, compared to the anticipated $83.3 million. The company’s earnings per share (EPS) matched forecasts precisely at $0.04. These results have been positively received by investors. Additionally, Stifel has reiterated its Buy rating and set a price target of $8.00 on Commerce.com following the company’s BigSummit conference. Needham also maintained its Buy rating with a higher price target of $10.00, highlighting improvements in AI enhancements that were showcased during the event. The research firm noted advancements in usability, data integration, and optimization of data flow into Answer Engines. Meanwhile, Stifel adjusted its price target for BigCommerce Holdings to $8.00 from $9.00 in light of the company’s rebranding to Commerce. This rebranding is intended to better align with the company’s focus in the "agentic commerce world."

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