SharpSpring Inc (SHSP) PT Raised to $22 at Canaccord Genuity After Reporting a Mixed Quarter

March 17, 2021 7:52 AM EDT
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Price: $16.34 --0%

Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 13 | New: 62
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Canaccord Genuity analyst David Hynes Jr. raised the price target on SharpSpring Inc (NASDAQ: SHSP) to $22.00 (from $18.00) after the company reported a fine but not great quarter where revenue and profit beat estimates, but bookings missed, and gross new MRR was down 20% y-o-y. Management guided mid-point 2021 revenue ahead of consensus, which seemed aggressive for two reasons: 1) the firm is coming off of an admittedly weak quarter, and 2) management is introducing deflationary pricing tactics aimed to incent annual commitments.

The analyst reiterated a Buy rating, stating "At the end of the day, you should own this stock because you believe that: (1) net revenue retention will improve with cohort maturity, (2) being the low-cost provider in the space affords future pricing power that can drive longer-term growth, and (3) the unit economics paint the picture of a business that should scale to be nicely profitable over time. For now, we haven’t lost conviction in any of those bets."

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