UPDATE: JPMorgan Upgrades Avalara (AVLR) to Overweight

JPMorgan analyst Sterling Auty upgraded Avalara (NYSE: AVLR) from Neutral to Overweight with a price target of $190.00.

The analyst comments "We are upgrading AVLR share to Overweight from Neutral. The stock has been an under-performer relative to our coverage in 2021 and now stands 30% below our price target. We believe the primary reason for the underperformance is concern that organic growth is starting to trend towards the low-20% level that the CFO outlined at the time of the IPO. However, we believe the expanded offerings for the upmarket, cross-border, and other compliance areas outside of sales tax position the company to be a more durable grower beyond just the sales tax tailwind created by the Supreme Court Wayfair ruling. We believe consistent growth in 2022 will help drive shares to our price target and create relative outperformance. In addition, the demand for Avalara compliance solutions like sales tax are defensive and heavily focused in the US avoiding major FX impacts."

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

Shares of Avalara closed at $142.94 yesterday.

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