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Investing.com - UBS raised its price target on E2open Parent Holdings (NYSE:ETWO) to $3.30 from $2.50 on Friday, while maintaining a Neutral rating on the stock. The company’s shares, currently trading at $3.25, have shown strong momentum with a 28.35% gain over the past six months, though InvestingPro data indicates the stock is currently in overbought territory.
The price target increase follows E2open’s first-quarter fiscal 2026 results, which showed 1% year-over-year revenue growth, marking the company’s first positive revenue growth in more than two years. With annual revenue of $607.69 million, InvestingPro analysis suggests the company is slightly undervalued based on its Fair Value metrics and comprehensive financial health assessment.
UBS noted that E2open’s subscription revenue exceeded expectations by 2 percentage points, suggesting that the company’s self-help initiatives are beginning to show results after several quarters of deal delays, customer churn challenges, and professional services revenue headwinds.
E2open has maintained its fiscal year 2026 guidance of approximately 0% year-over-year revenue growth and adjusted EBITDA margin of about 34%, though UBS considers this outlook conservative given the first-quarter performance.
The new $3.30 price target is based on deal terms that translate to 27 times calendar year 2026 estimated free cash flow on UBS’s revised estimates, compared to the previous target of $2.50 based on 23 times calendar year 2026 enterprise value to free cash flow.
In other recent news, E2open Parent Holdings Inc. reported first-quarter earnings for fiscal year 2026, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.05, exceeding the forecasted $0.04, and generated revenue of $152.6 million, slightly above the anticipated $149.2 million. E2open also reported a net loss of $15.5 million, which marks a significant improvement from the previous year’s $42.8 million loss. Additionally, E2open is set to be acquired by WiseTech Global, with the acquisition expected to be finalized by the end of 2025. The company’s strategic focus on innovation and efficiency has contributed to these positive financial results. Analysts from various firms have noted the company’s strong performance, with some suggesting potential benefits from the upcoming merger. E2open’s future projections include a subscription revenue target between $525 million and $535 million for the full fiscal year 2026. The company also anticipates maintaining a gross profit margin between 68% and 68.5%.
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