Intapp stock target cut to $68 by Truist Securities

Published 16/04/2025, 15:16
Intapp stock target cut to $68 by Truist Securities

On Wednesday, Truist Securities revised its price target for Intapp , Inc (NASDAQ:INTA), reducing it from $80.00 to $68.00, while maintaining a Buy rating on the company’s shares. The adjustment reflects a new valuation approach by the firm amid a climate of heightened macroeconomic uncertainties. Currently trading at $52.46, Intapp has demonstrated strong market performance with a 70.76% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with additional insights available in the comprehensive Pro Research Report.

Terry Tillman of Truist Securities offered insight into the rationale behind the new price target, attributing it to an applied 8.5x enterprise value/sales multiple on the firm’s forecasted fiscal year 2027 revenue of $635 million. Despite potential macroeconomic headwinds, Tillman expressed confidence in Intapp’s ability to maintain robust SaaS revenue growth, which is anticipated to exceed 20% into fiscal year 2026. This optimism is supported by the company’s current revenue growth of 18.58% and impressive gross profit margin of 72.96%. InvestingPro subscribers can access 7 additional key tips about Intapp’s growth prospects and financial health.

The analyst underscored Intapp’s prospects for profit expansion and cash flow improvement, suggesting that the company’s performance remains strong. While not currently profitable, InvestingPro data indicates analysts expect profitability this year. He pointed out that market-leading vertical SaaS specialists have historically achieved, and may continue to attain, high-single digit EV/sales multiples. The company maintains a healthy balance sheet with more cash than debt, supporting its growth trajectory.

Tillman also alluded to Intapp’s potential as an attractive acquisition target, in addition to its capacity to thrive through the execution of a profitable growth strategy. This dual potential for success as an independent entity or as a buyout candidate was noted as a positive factor for the company’s stock performance going forward.

The revised price target and maintained Buy rating indicate Truist Securities’ continued optimism about Intapp’s market position and financial trajectory, despite the price target adjustment to reflect current market conditions.

In other recent news, Intapp reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.21, beating the forecasted $0.16, and achieving revenue of $121.2 million, slightly above the expected $121.16 million. The company’s SaaS revenue increased by 27% year-over-year, and its cloud annual recurring revenue (ARR) grew by 29%, indicating a strong demand for its cloud-based solutions. Despite these positive results, Intapp’s stock experienced a decline in after-hours trading. Meanwhile, Intapp announced its plan to acquire TermSheet, a real estate software provider, to integrate its technology into the DealCloud platform, enhancing services for real assets investors and advisors.

BofA Securities maintained a Buy rating on Intapp with a price target of $76, expressing confidence in the company’s long-term strategy to leverage its professional and financial services markets. The firm highlighted Intapp’s potential for over 25% Cloud ARR growth, surpassing the average of its vertical software peers. Additionally, Intapp introduced new AI-enabled product enhancements at its Amplify event, including the general availability of DealCloud Activator. These developments are expected to strengthen Intapp’s market offerings and contribute to its competitive edge.

The acquisition of TermSheet is anticipated to finalize within 45 days, bringing its team, including founders Roger Smith and Sahil Rattan, to Intapp. This strategic move aims to automate processes and provide access to market intelligence, thereby improving investment strategy execution. Intapp plans to offer advanced features for both DealCloud and TermSheet post-acquisition, with the unified solution available to existing clients without additional purchase requirements.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.