Bigcommerce Gets Reality Check from Morgan Stanley after Rally By Investing.com


© Reuters.

By Christiana Sciaudone

Investing.com —   Bigcommerce Holdings sank 15% after analysts initiated coverage without much enthusiasm. 

The stock is trading around $109.30, down 24% since hitting a high last week. 

Morgan Stanley (NYSE:) rated the stock underweight with a price target of $52, saying that the stock’s valuation implies “highly elevated levels of growth and present meaningful downside risk if results do not meet expectations,” Morgan Stanley’s Stan Zlotsky wrote, according to Seeking Alpha. Morgan Stanley was the lead underwriter on BigCommerce’s IPO. 

The company’s initial public offering priced at $24 on Aug. 4, and shares reached a peak of $141 on Aug. 27. 

Truist initiated Bigcommerce with a hold rating and a $132 price target, and Raymond James gave it a market perform rating, also on valuation, and did not set a price target, The Fly reported. 

Raymond James’s Brian Peterson also cited valuation, noting that shares are trading at 65 times estimated 2021 revenue. He recommends waiting for a more attractive entry point. 

Truist’s Terry Tillman had a more positive take on Bigcommerce. The company can sustain improved sales growth given its “differentiated open SaaS ecommerce platform, investments and market share gains, The Fly said. 

The continued move away from physical stores and toward e-commerce could drive higher gross merchandise value trends, Tillman said. 

 

    

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Original source link