EXFY - Expensify stock rallies after BofA upgrades to Buy on potential for higher margins
- Expensify ( NASDAQ: EXFY ) shares are jumping 11.6% in Monday morning trading after Bank of America analyst Koji Ikeda upgrades the cloud-based expense management platform to Buy from Neutral.
- Ikeda cited prospects for faster growth in Expensify ( EXFY ) than its software peers due to its "lean employee business model," which will likely allow the business to deliver high EBITDA margins, according to a note written to clients.
- Note that the company's EBITDA margin on a trailing twelve month basis is standing at -15.5% compared with the sector median of 13.2%.
- In addition, Expensify's ( EXFY ) "freemium go-to-market strategy is a good strategy to acquire new subscribers because it enables a free trial period, which can be viewed as attractive for VSB/SMBs that are typically cost conscious," Ikeda wrote.
- BofA's Buy rating, meanwhile, contrasts with the SA Author Rating of Hold, but agrees with the average Wall Street Analyst Rating of Buy.
- Take a look at how Expensify earnings fared during the first quarter .
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Expensify stock rallies after BofA upgrades to Buy on potential for higher margins