Qualtrics (XM) PT Lowered to $14 at Raymond James
Raymond James analyst Brian Peterson lowered the price target on Qualtrics (NASDAQ: XM) to $14.00 (from $17.00) while maintaining an Outperform rating following earnings.
The analyst commented, "We’re maintaining our Outperform rating on XM following 3Q22 results that delivered impressive top and bottom line upside, although contract terms created an additional layer of complexity on billings/cRPO. With management indicating that billings (+17% y/y; +20% in local currency), is likely the best proxy for organic growth, as well as commentary that extended sales cycles could persist into 2023, we’re taking a slightly more conservative stance on growth expectations for 2023 (not at 17%). This purely remains a cyclical dynamic, and we still see ample growth opportunity for Qualtrics as the category leader with a number of product and go-to-market growth vectors. We also note that shares trade at just ~4x our revised 2023 revenue estimate after hours, which is a discount to the 10-20% group at ~5x. We like that risk/reward."