CA - Barclays upgrades Jamf Holding downgrades UiPath Walkme Pegasystems Descartes

Barclays upgraded Apple device management company Jamf Holding ( NASDAQ: JAMF ) on Tuesday, while also downgrading UiPath ( NYSE: PATH ), Walkme ( NASDAQ: WKME ), Pegasystems ( NASDAQ: PEGA ) and Descartes ( DSGX ), noting that the current outlook favors companies that are cash flow positive.

Analyst Raimo Lenschow moved his rating on Jamf Holding ( JAMF ) to overweight, while cutting UiPath ( PATH ) and Walkme ( WKME ) to equal-weight and Pegasystems ( PEGA ) and Descartes ( DSGX ) fell to under-weight.

Jamf Holding: Lenschow noted that Jamf Holding ( JAMF ) has shown "solid growth and cash flow margins" since it went public in July 2020, but its dependency on Apple ( AAPL ) and potential competition from VMware ( VMW ) and MobileIron held it back.

"However, the competitive situation is now dramatically easier with no pure-play, focused public players left," Lenschow wrote in a note to clients, adding that the company has "significantly broadened its offering by adding security etc." and it trades at 18 times 2024 enterprise value-to-free cash flow, while generating 25% revenue growth and 22% free cash flow margins.

Descartes: Lenschow noted that Descartes ( DSGX ) has "heavy exposure" to the global trade environment and with signs showing that volumes are slowing, Descartes ( DSGX ) still trades at a premium to its peers.

"We think there likely could be a reset here and hence we are downgrading to Underweight from Equal Weight," Lenschow added.

Lenschow added that UiPath ( PATH ) and Walkme ( WKME ) have become "show-me" stories, as they work to regain investor confidence and are likely to struggle in the current environment.

New York City-based Pegasystems ( PEGA ) has a $2B lawsuit hanging over it and the company is still dealing with its transformation to the cloud, which will make reporting for the software company choppy over the next several quarters.

Late last month, Jamf ( JAMF ) signed a definitive agreement to acquire ZecOps, with the deal expected to close in the fourth-quarter .

Analysts are largely cautious on Jamf Holding ( JAMF ). It has a HOLD rating from Seeking Alpha authors , while Wall Street analysts rate it a BUY . In addition, Seeking Alpha's quant system, which consistently beats the market, rates JAMF a HOLD .

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