BIGC - BigCommerce rallies after BofA points to competitive moat and strong revenue stream

Bank of America starts off coverage on BigCommerce Holdings (NASDAQ:BIGC) with a positive bias, saying the stock screens well in the firm's 4Ms framework for software investing - Market, competitive Moat, Management strength and Margin potential. Analyst Koji Ikeda and team also like the predictable revenue stream. "We view BigCommerce’s revenue stream as majority subscription-based, and its PSR revenue is less tied to GMV, which could make the model more predictable versus its other transactions-based eCommerce platform peers." BofA initiates BigCommerce (BIGC) with a Buy rating and price objective of $66. The PT is derived from a 13.7X EV/2023 revenue estimate, which is a premium to horizontal SaaS peers at 12.3X. Shares of BIGC are up 2.76% premarket to $42.39, which is still below the 10-day, 50-day, 100-day and 200-day moving averages.

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BigCommerce rallies after BofA points to competitive moat and strong revenue stream