UPDATE: BofA Securities Reinstates Qualtrics (XM) at Buy

March 31, 2022 6:08 AM EDT
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Price: $14.54 -0.27%

Rating Summary:
    16 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 40 | New: 22
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(Updated - March 31, 2022 9:42 AM EDT)

BofA Securities analyst Adam Bergere reinstates coverage on Qualtrics (NASDAQ: XM) with a Buy rating and a price target of $40.00, which is based on a 14.2x EV/C23e revenue multiple (0.63x on an EV/C23e Rev/G basis), a premium to its midcap software peers which average 12.9x EV/C23e revenue.

The analyst stated "Qualtrics is widely considered the pioneer of the vast $60bn+ XM [Experience Management] market which encompasses employee, customer, brand, and product experience. The company’s leadership position is underscored by its 16,750+ customers, including 89%+ of the Fortune 100, and serves an impressive roster of enterprises known to have highly focused CX programs with high NPSs, such as Peloton, BMW, Chobani, JetBlue, DocuSign, and Disney, among many others. The company’s 128%+ DBNRR serves as a testament to customer satisfaction and appetite for CX/EX software. The company has proven a strong track record of execution thus far and we believe a CX/EX software adoption cycle is underway, fueled by broad DT mandates with companies increasingly adopting data-driven approaches."

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

Shares of Qualtrics closed at $29.06 yesterday.

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