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On Tuesday, Stifel analysts adjusted their expectations for Intapp, Inc (NASDAQ: INTA), a company specializing in professional services software, by reducing the stock’s price target from $75.00 to $65.00 while still upholding a Buy rating on the shares. According to InvestingPro data, despite a recent price decline, the stock has delivered an impressive 69.75% return over the past year, with analyst targets ranging from $60 to $92.
The decision to lower the price target comes amidst a period of broader macroeconomic uncertainty that has affected the software sector, including Intapp’s stock performance. Despite these market conditions, Stifel’s analysis suggests that Intapp’s fundamental prospects have not been altered. The company is expected to continue its progress on cloud migration and to maintain steady cross-selling through its various product offerings such as DealCloud, Collaboration, Compliance, and its growing range of AI solutions. InvestingPro analysis reveals strong fundamentals with a robust gross profit margin of 72.96% and revenue growth of 18.58% in the last twelve months.
Intapp is seen as well-equipped to pursue its strategy of becoming a more integrated platform that enables vendor and workflow consolidation. As the earnings season approaches, there is anticipation for greater clarity on the adoption of AI solutions and Intapp’s effectiveness in monetizing these offerings. Additionally, the company’s enterprise and strategic go-to-market initiatives, which were introduced earlier in the year, are expected to contribute to its performance.
The end markets that Intapp serves are believed to support the company’s stability and potential for growth. Analysts are particularly interested in observing the company’s ability to drive cross-sell dynamics, especially in areas like DealCloud within the legal sector.
Although the price target has been revised, the Buy rating indicates that Stifel analysts remain optimistic about Intapp’s capacity to navigate the current market and continue its growth trajectory. InvestingPro subscribers have access to additional insights, including 8 more ProTips and a comprehensive analysis of Intapp’s financial health, which currently shows a "GOOD" overall rating. For detailed valuation metrics and growth projections, investors can access the full Pro Research Report, available exclusively to subscribers.
In other recent news, Intapp, Inc. reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.21, compared to the forecasted $0.16. The company’s revenue reached $121.2 million, slightly exceeding the anticipated $121.16 million. Despite these positive financial results, Intapp’s stock experienced a decline in after-hours trading. In a strategic move, Intapp announced plans to acquire TermSheet, a software provider for real estate teams, with the acquisition expected to close within 45 days, pending customary conditions. This acquisition aims to enhance Intapp’s DealCloud platform by integrating TermSheet’s technology, which is anticipated to benefit real assets investors and advisors. Analyst activity around Intapp included Truist Securities adjusting its price target from $80.00 to $68.00, maintaining a Buy rating due to macroeconomic uncertainties, while BofA Securities reiterated a Buy rating with a $76.00 target, expressing confidence in Intapp’s long-term growth strategy. These developments highlight Intapp’s ongoing efforts to strengthen its market position and expand its product offerings in the professional services sector.
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