MTTR - Freshworks GoDaddy ServiceNow among SaaS software price target cut at Morgan Stanley on slowing demand
With increased evidence of a slowing demand environment, Morgan Stanley has cut price targets across its SaaS software stock coverage and 2022/2023 revenue estimates by 1%/3% ahead of a potential “downtick in growth outlook”.
Morgan Stanley has reduced 2022 billings estimates by 2% on average to account for risk in 2H and leveraged recent analysis to assess the recession risk in SaaS which points to a 2.5-4 point annual headwind to total growth rates for every 10 point headwind to growth in new demand.
Let's take a look at the list of the Morgan Stanley PT cuts:
- HubSpot ( HUBS ) PT cut to $436 from $539 with an "overweight" rating. PT indicates a potential upside of 61.46% from the stock's previous close.
- Freshworks (FRSH) PT cut to $17 from $23 with an "equal weight" rating. PT indicates a potential upside of 33.12% from the stock's previous close.
- GoDaddy ( GDDY ) PT cut to $91 from $95 with an "equal weight" rating. PT indicates a potential upside of 27.61% from the company’s current price.
- ZoomInfo Technologies ( ZI ) PT cut to $66 from $81, indicates a potential upside of 86.81% from the company's current price
- Vertex ( VERX ) PT cut to $10 from $12 with an "underweight" rating. PT indicates a potential downside of 4.85% from the stock's previous close.
- ServiceNow ( NOW ) PT cut to $575 from $594, indicates a potential upside of 38.77% from the stock's current price.
- Qualtrics ( XM ) PT cut to $18 from $43, indicates a potential upside of 43.08% from the company's current price.
- BigCommerce Holdings ( BIGC ) PT cut to $19 from $21 with an "equal weight" rating. PT indicates a potential upside of 4.00% from the stock's current price.
- Amplitude ( AMPL ) PT cut to $18 from $23 with an "equal weight" rating. PT indicates a potential upside of 22% from the stock's current price.
- LegalZoom.com ( LZ ) PT cut to $12 from $13 "equal weight" rating. PT indicates a potential upside of 23% from the stock's current price.
- Matterport ( MTTR ) PT cut to $5 from $6 with an "equal weight" rating. PT indicates a potential upside of 30.89% from the stock's current price.
- Liveramp Holdings ( RAMP ) PT cut to $38 from $41 with an "overweight" rating. PT indicates a potential upside of 42.38% from the stock's current price.
- Sprout Social ( SPT ) PT cut to $66 from $70, indicates a potential upside of 18.77% from the stock's current price.
- UserTesting ( USER ) PT cut to $9 from $11, indicates a potential upside of 59.29% from the company's current price.
- Wix.Com ( WIX ) PT cut to $77 from $85 with an "equal weight" rating. PT indicates a potential upside of 24.11% from the company's current price.
- Zeta Global Holding ( ZETA ) PT cut to $6.50 from $9.50 with an "equal weight" rating. PT indicates a potential upside of 46.72% from the company's current price.
ServiceNow ( NOW ) stock tumbled more than 12% on Tuesday after Chief Executive Bill McDermott said the company's sales cycle in Europe could be getting longer.
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Freshworks, GoDaddy, ServiceNow among SaaS software price target cut at Morgan Stanley on slowing demand