BIGC - BigCommerce stock slumps as Piper Sandler steps to sidelines

BigCommerce Holdings ( NASDAQ: BIGC ) stock slipped on Tuesday after Piper Sandler took its rating to Neutral from Buy.

Equity analyst Clarke Jefferies explained that execution risks and concerns about the trajectory of the commercial segment motivated a more cautious rating. Additionally, significant staff cuts announced in December could hamper performance, in Jefferies’ view.

“We believe following the company's workforce reduction, Commercial ARR could come in worse than anticipated as the pullback in GTM investments reduces the backfill of ARR that offsets typical SMB churn,” he explained. “We acknowledge shares still retain a healthy discount to SaaS peers, but see the risk-reward as balanced given the potential for e-commerce growth to remain challenged in 2023, potentially weighing on the broader business.”

Jefferies trimmed his price target to $12 from a prior $16 alongside the downgrade. Shares of BigCommerce Holdings ( BIGC ) fell 8.04% shortly after Tuesday’s market open.

Read more on the company’s Amazon integration announced in January .

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