Cowen upgrades Domo stock rating to Buy on growth acceleration potential

Published 26/08/2025, 11:22
Cowen upgrades Domo stock rating to Buy on growth acceleration potential

Investing.com - TD Cowen has upgraded Domo (NASDAQ:DOMO) stock rating from Hold to Buy while raising its price target to $21.00 from $13.00. The stock has shown remarkable momentum, delivering a 95% return year-to-date and trading at $13.84, well above its 52-week low of $6.01.

The research firm believes Domo is "turning the corner" on two major strategic initiatives that could drive sustained growth acceleration. These initiatives include shifting to consumption-based pricing and establishing partnerships with CDWs. According to InvestingPro’s analysis, the company maintains a FAIR financial health score, though its current ratio of 0.51 suggests careful monitoring of its operational execution is warranted.

TD Cowen noted growing investor demand for data infrastructure stocks amid limited supply options, suggesting Domo has remained "under the radar" despite its potential in this sector.

The new price target of $21.00 represents a significant increase from the previous target of $13.00, reflecting TD Cowen’s more optimistic outlook on the company’s prospects.

The firm sees "attractive share appreciation potential" for Domo as these strategic initiatives begin to yield results in the coming periods.

In other recent news, Domo has announced several strategic developments that could impact its growth trajectory. The company enhanced its cloud integration capabilities with Snowflake, introducing new data workflow features that allow users to perform secure data transformations without moving or duplicating data. Additionally, Domo expanded its partnership with Snowflake to offer a suite of applications on the Snowflake Marketplace, including a managed analytics and business intelligence solution. In another move, Domo partnered with Burbio to integrate its embedded analytics solution into Burbio’s K-12 data analytics platform, adding AI-powered tools for enhanced insights.

On the financial front, TD Cowen analysts raised their price target for Domo stock from $10.50 to $13, maintaining a Hold rating. The analysts noted optimism about Domo’s ongoing turnaround efforts, citing new partnerships and changes to the company’s consumption model as positive developments. Meanwhile, JMP Securities reiterated a Market Outperform rating on Sprinklr, setting a price target of $17. The firm highlighted the potential benefits of ongoing SaaS acquisitions for companies like Sprinklr . These recent developments provide investors with insights into the strategic directions both companies are taking.

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