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UPDATE: KeyBanc Downgrades WalkMe Ltd. (WKME) to Sector Weight

May 24, 2022 3:36 AM EDT
Get Alerts WKME Hot Sheet
Price: $8.35 -0.6%

Rating Summary:
    6 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 5 | New: 0
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(Updated - May 24, 2022 5:14 AM EDT)

KeyBanc analyst Michael Turits downgraded WalkMe Ltd. (NASDAQ: WKME) from Overweight to Sector Weight.

The analyst comments "Downgrading to SW following a modest 1Q rev beat, but an ARR miss, decline in quarterly enterprise DBNRR, slowing RPO growth, and -3% 2Q rev guide miss following slipped large deals in 1Q. 2022 rev guide maintained despite 2Q miss. Encouragingly, mgmt indicated pushouts were expansions with existing 7-figure custs., delayed by need to work with procurement and by pricing discussion as they move up market, with some already closed in a strong 2Q start. While we view WKME's DAP as providing attractive enterprise ROI, the pushouts underscore DAP's still evangelical sale and steeper risks than for core front/back office software given inflation/potential recession. We are also more cautious on CF losses, with WKME at -31%/-25% 2022E EBIT/FCF margin. We look for sustained op. leverage and stabilization of large deal visibility to return to a more constructive stance on the stock and look to analyst day (5/24) for more details."

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

Shares of WalkMe Ltd. closed at $12.20 yesterday.


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