Jefferies Cuts Software Price Targets Across the Board, Highlights Names With Least Downside
- Wall Street seesaws, trading choppy near end of quarter
- S&P 500 Set to Post Worst 1st-Half Return Since 1970
- Tesla (TSLA) Increases Production at Giga-Texas - Report
- CEOs are Losing Confidence Due to High Inflation, Bill Ackman Says
- S&P 500 Could Rally Almost 10% From Here, Bank of America's Suttmeier Suggests
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Jefferies analyst, Brent Thill, cut price targets in the software sector, virtually across the board expecting another drop in fundamental estimates stating "Software multiples continue to correct, contracting 52% YTD and trading at 6.7x CY23 rev. vs the historical average of 8x. Despite the recent downdraft, we believe there could still be downside to multiples as fundamentals could weaken into a recessionary environment." "Our revisions are highest among names that fall in one of the following categories: 1) exposure to interest rate volatility, 2) exposure to Europe, 3) products with high ASPs, 4) deferred software, 5) high SMB exposure, 6) consumption based models, or 7) outlier multiples."
Companies highlighted with the least downside: MSFT, DDOG, ESTC, NET, VRNS, CHKP, CRWD and S
Companies cut by 25% or more: TEAM, SNOW, DDOG, SUMO, ESTC, NET, SMAR, ASAN, VRNS, CRWD, S, WDAY, and ZUO
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Cuts Bath & Body Works (BBWI) to Neutral on Multi-Year Model 'Reset'
- Evolution Mining Ltd. (EVN:AU) (CAHPF) PT Lowered to AUD2.95 at UBS
- 'Protection Against the Coming Storm': Goldman Sachs Pops on BofA Upgrade to Buy
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!