DA Davidson assumes coverage on Domo stock with Neutral rating

Published 28/08/2025, 08:16
DA Davidson assumes coverage on Domo stock with Neutral rating

Investing.com - DA Davidson has assumed coverage on Domo (NASDAQ:DOMO) with a Neutral rating and a price target of $15.00, up from the previous target of $9.00. The stock currently trades at $17.57, near its 52-week high of $17.88, after posting an impressive year-to-date return of 148%.

The research firm’s coverage transition follows Domo’s second-quarter fiscal 2026 earnings report, which showed better-than-expected results on both revenue and profitability metrics.

DA Davidson noted that Domo delivered a "beat and raise" performance, with the company increasing its guidance for both top and bottom-line results following the quarter.

The firm highlighted that partners are contributing to pipeline growth for Domo, while the company’s shift to consumption-based pricing is positively impacting net retention rates among existing customers.

Despite these positive developments, DA Davidson indicated it is maintaining a neutral stance until it sees "more significant upside to the growth outlook" that would warrant a more positive rating on the business intelligence platform provider.

In other recent news, Domo Inc . announced its first-ever positive non-GAAP earnings per share during its Q2 2025 earnings call. This achievement marks a significant milestone in the company’s financial journey. The earnings report highlighted the company’s improved financial metrics, which have been bolstered by expanded AI capabilities. These developments have garnered attention from investors, reflecting confidence in the company’s financial health. The positive earnings news is a crucial update for investors monitoring Domo’s performance. Additionally, the company’s advancements in AI are seen as a driving factor in its financial success. This series of positive developments positions Domo as a company to watch in the coming quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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