Qualtrics (XM) PT Climbs to $53 at Piper Sandler on Net Retention Ratio of 125%

October 21, 2021 9:16 AM EDT
Get Alerts XM Hot Sheet
Price: $32.71 -0.37%

Rating Summary:
    13 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 10 | New: 42
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Piper Sandler analyst Brent Bracelin raised the price target on Qualtrics (NASDAQ: XM) to $53.00 (from $50.00) while maintaining a Overweight rating after Q3 marked the third straight quarter of 45%+ subscription growth. The upside was driven by an impressive net retention rate of 125% that now exceeds pre-COVID levels of 122% witnessed during 2017 and 2018.

The analyst stated "Broader enterprise and international adoption that contributed to a $13M revenue beat suggests the end-to-end platform strategy (vs. single silo approach) in experience management continues to resonate with both new and existing customers. We are equally impressed by the durability of subscription revenue growth that is poised to exceed a $1B annualized run-rate. We are raising our 2021 and 2022 revenue estimates by $46M and $102M, respectively, with a $92M consideration from Clarabridge in 2022. We are raising our PT slightly to $53 from $50 based higher CY26 estimates."

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