UPDATE: Goldman Sachs Downgrades Avepoint Inc. (AVPT) to Neutral

(Updated - March 21, 2022 3:32 AM EDT)

Goldman Sachs analyst Brian Essex downgraded Avepoint Inc. (NASDAQ: AVPT) from Buy to Neutral with a price target of $7.00.

The analyst comments "AvePoint delivered healthy underlying ARR growth for 4Q, but we believe incremental complexity around the story provides a challenging setup ahead. AvePoint delivered 4Q ARR growth of 34% y/y as the company saw incremental SaaS traction, supported by transformation demand and security in its markets. However, recognized revenue missed consensus estimates with FY22 guidance for ARR, revenue and operating profit under expectations as well. Although the underlying growth of the business is healthy, and momentum with ARR remains intact, investor appetite for recent SPACs has been low to begin with and multiples for SPACs have contracted meaningfully as many have disappointed relative to initial guidance provided. Considering this, we believe AVPT's 4Q revenue miss (although explainable), lower FY22 guidance (revenue, ARR, operating margins), lack of profitability, and recent CFO turnover represent headwinds for stock performance ahead. We are updating our model to reflect current period results and revised outlook as we downgrade to Neutral."

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

Shares of Avepoint Inc. closed at $5.94 yesterday.

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