DOMO - Domo shares gain 3% after Morgan Stanley upgrade on $20B opportunity Street-high price target at Cowen

Citing "greater confidence" in the company's ability to "grow into a large opportunity," Morgan Stanley upgrades Domo (DOMO) from Equal-Weight to Overweight and raises the price target from $41 to $70.Analyst Sanjit Singh writes that the "turn to positive cash flow in combination with growing demand for real-time intelligence frees up Domo to address a $20B opportunity."The analyst notes that Domo has accelerated billings growth YTD in FY21, suggesting that the "business has reached a key inflection point."Domo's "sharply improving sales execution" inspires confidence in the company's durability and establishes an attractive risk/reward balance, says Singh.Domo shares are trading at 6.8x CY22 sales, a discount to the 12.7x for infrastructure/analytics peers, which makes Morgan Stanley see shares as an attractive opportunity at the current valuation.More action: Cowen (Outperform) raises its Domo price target from $65 to the Street-high $72, citing increased demand, an improved go-to-market execution, and cost controls.Domo shares are up 3.2% to $62.42.

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Domo shares gain 3% after Morgan Stanley upgrade on $20B opportunity, Street-high price target at Cowen