UPDATE: Stifel Downgrades Olo Inc. (OLO) to Hold

Stifel analyst Brad Reback downgraded Olo Inc. (NYSE: OLO) from Buy to Hold with a price target of $9.00 (from $12.00).

The analyst comments "Olo posted disappointing F2Q22 results as 2H guidance was ~$15M below sellside expectations (when excluding a few million dollars of Olo Pay revenue) driven by elongated sales cycles and slower than anticipated deployment schedules at existing customers. Additionally, management disclosed Subway (~15K locations) has begun the process of replacing Olo's Rails product with a homegrown solution (2.5k locations moved in 2Q with the remaining expected in 1Q23). We note the 2H guide does NOT stem from the Subway loss as management had already included Subway's departure in previous guidance (disclosed today). Overall, while the restaurant industry will continue to move forward with digitization efforts, the pace of these transitions are unlikely to look anything like what the segment has experienced over the Covid years. We are uncertain how quickly the company will adjust to this new reality and downgrade the stock to Hold with a $9 TP (~5x EV/CY24 Revs)."

For an analyst ratings summary and ratings history on Olo Inc. click here. For more ratings news on Olo Inc. click here.

Shares of Olo Inc. closed at $12.99 yesterday.

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