2023-06-12 11:36:04 ET
- Morgan Stanley on Monday downgraded Expensify ( NASDAQ: EXFY ) to Underweight from Equal-weight, given structural and macro headwinds as well as relatively unattractive risk/reward.
- Shares of Expensify ( EXFY ) fell as much as 16% on Monday, before paring losses to trade 7.8% lower.
- "We expect EXFY to face challenges near-term as the core business works through structural and macro-related headwinds, and new product contribution remains highly uncertain," said analyst James Faucette. "Muted catalyst path and downside skew to estimates leads us to downgrade."
- Faucette said Expensify's ( EXFY ) Q1 results showed ongoing pressure across its KPIs, including stagnating paid user growth and ARPU expansion.
- He noted that new product expansion is likely to be difficult given competitive intensity and limited scale.
- Morgan Stanley cut its estimates for Expensify's ( EXFY ) 2023/2024 revenue to $163.4M/$175.1M from $183.4M/$203.9M ($168.33M/$182.46M consensus ).
- Price target was cut to $5 from $9, implying 30.3% potential downside to EXFY's last close.
- Now read - Expensify: Downside Is Limited Considering Valuations And Buybacks
For further details see:
Expensify cut to Underweight at Morgan Stanley on structural, macro headwinds