UPDATE: If Anaplan Inc. (PLAN) Can Hit its New Bogeys, The Bull Case is Within Reach, Morgan Stanley Explains How
Morgan Stanley analyst Stan Zlotsky lowered the price target on Anaplan Inc. (NYSE: PLAN) to $73.00 (from $80.00) after Q3 introduced uncertainty into the growth story with cRPO bookings below expectations but Q4 pipeline guidance and a FY23 25% growth target implies slipped deals are the culprit
The analyst reiterated an Overweight rating, stating "From our point of view, with the after-hours move the stock is now trading at 7.4x CY23 EV/S, implying valuation of a mid-teens growing SaaS asset, rather than one with 25%+ growth potential. We are leaving our forward topline estimates largely unchanged, but as we adjust forward margins and implied multiple, we take down our PT to $73. At the same time, if the company is able to execute, and drive upside to FY23 revenue, we could see the stock rerate over the coming twelve months toward our $100 bull case. Although the bull case is plausible, we think it’ll take several quarters of consistent execution for investors to regain confidence in the management team, and drive the multiple higher."