DCT - Duck Creek in red after downgrade by BofA Securities
- Duck Creek Technologies ( NASDAQ: DCT ) is trading around -5% down after it was downgraded by BofA Securities to Underperform from Neutral with a price target of $11, down from $16.
- Analyst Michael Funk expects "macro-driven challenges" to hurt the property and casualty insurance market, leading to increased customer conservatism and a slowdown in cloud migration activity in the near term.
- As a result, Duck Creek is expected to see limited growth and material multiple expansion. A tougher selling environment could also elongate already lengthy sales cycles, lower deal sizes and cut sales productivity.
- Nevertheless, BofA Securities sees Duck Creek as a "compelling long-term value proposition" with an entrenched market share position and "a remarkably sticky customer base (~99% GRR)".
- SA Quant rating for Duck Creek is Hold.
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Duck Creek in red after downgrade by BofA Securities