Navan Inc (NAVN) PT Lowered to $31, but TD Cowen Reiterates Buy On 'Top Pick'

TD Cowen analyst Jared Levine lowered the price target on Navan Inc (NASDAQ: NAVN) to $31.00 (from $34.00) while maintaining a Buy rating.

The analyst commented: "2H Organic Growth Raise Not Well Understood; Reiterate Buy On Top Pick; FY27 revenue guide increased 280 bps, meeting the 2-point raise bogey, but shares indicating down as investors have questioned if this implied an organic reduction for 2H. However, only ~50 bps of the 100 bps 2H raise was inorganic. As investors better understand these dynamics, we expect share pressure to reverse given continued robust underlying trends.

Investors might not also be fully appreciating its disclosure of $4.0B of newly signed GBV from its SLG motion it has achieved over the TTM representing growth of 60% y/y, including a record 2Q. Importantly, these bookings are just starting to layer in since it typically takes SLG signings at least 7 months to fully ramp (2 months for implementation + 5 month ramp period) highlighting accelerating trends. NAVN also maintained a doubling of PLG revenue in 2Q and cited RFPs up 3x in 1H y/y. These data points support our conviction on a favorable growth outlook for NAVN that we think is being overlooked. We raise our revenue/adj EBIT estimates to account for better 2Q results & outlook. We move PT to $31 based on 8.5x EV/S (CY27E)."

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