KLTR - Kaltura falls after Bank of America downgrades on risk of rising competitive pressure

2023-04-17 15:00:22 ET

Kaltura ( NASDAQ: KLTR ) fell ~5% during afternoon trading on Monday after Bank of America analyst downgraded the application software company on risk of rising competitive pressure.

Also, expectations for continued enterprise IT budget scrutiny and the agency's view that low-growth software is likely to underperform during market rallies contributed to the downgrade.

Analyst Michael Funk lowered the rating on the company to Underperform from Neutral, and the price target to $1.75 from $2.75.

Larger and better-funded competitors are increasingly competing on price to address churn and gain market share, the analyst noted.

Also, risk to IT spending in technology and financial services verticals is elevated following the Silicon Valley Bank failure, according to the analyst report.

Seeking Alpha's Quant Rating system and the sell-side analysts give to the stock a Hold rating.

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