UPDATE: Goldman Sachs Starts AvidXChange Holdings (AVDX) at Buy

Goldman Sachs analyst Will Nance initiates coverage on AvidXChange Holdings (NASDAQ: AVDX) with a Buy rating and a price target of $40.00.

The analyst comments "We view AVDX as a strong competitor in the middle market accounts payable (AP) automation landscape that is well positioned to drive electronic payment adoption for B2B payments through leveraging its expansive lineup of vertical-specific software solutions that automate the invoicing process. We believe AVDX is well positioned to take share in the largely unpenetrated $26bn total addressable market (TAM) for middle market AP automation, driving a very long duration growth profile with longer-term optionality for an inflection in automation adoption in its target market. In addition, we believe Avid should see strong growth in payments revenue over time as a result of 1) increasing the cross-sell of its AvidPay network to software clients, where attach rates on new business are nearly double the back book; and 2) increasing the penetration of electronic payments (Virtual Card and enhanced ACH) within the AvidPay network, which we estimate is currently just ~5% of total spend on Avid’s platform. Lastly, we see intermediate- and longer-term opportunities to increase monetization through supplier-oriented products such as its Invoice accelerator product, as well through as rolling out support for cross-border payments."

For an analyst ratings summary and ratings history on AvidXChange Holdings click here. For more ratings news on AvidXChange Holdings click here.

Shares of AvidXChange Holdings closed at $23.81 yesterday.

You May Also Be Interested In

• BofA Securities Upgrades Moderna (MRNA) to Neutral
• Keysight Technologies (KEYS) PT Raised to $440 at UBS Amid Broad-Based AI Strength
• Palo Alto Networks (PANW) PT Raised to $390 at UBS, Neutral Rating Maintained