MODN - Model N: Unspectacular But Steady (Rating Upgrade)

2024-03-26 16:16:48 ET

Summary

• Model N, a revenue management software company, has seen flat performance this year due to a slowdown in revenue growth and tough competition.
• The company has achieved stronger SaaS ARR growth and has a healthy pipeline conversion, but there are few upside catalysts left.
• Model N faces saturation in its niche market, competition from stronger brands, and limited operating leverage, making its valuation of 21x EV/FY24 adjusted EBITDA rich.

So far, the year 2024 has been all about momentum. Basically any tech stock with any whiff of AI tailwinds has gotten a major boost, while the rest of the industry has been left in the dust....

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