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Analysts React To Qualtrics' Q2 Results

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·2 min read
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  • Analysts continue to exude confidence in Qualtrics International Inc (NASDAQ: XM) with a hint of caution despite dismal Q3 guidance.

  • JMP Securities analyst Patrick Walravens maintained its Market Outperform rating and $28 price target on Qualtrics after the company reported mixed Q2 results.

  • The results reflected Qualtrics seeing some deals take longer in the macroeconomic environment, with the non-GAAP EPS missing the consensus. The guidance was mixed.

  • However, he saw the deteriorated macro and IT spending already discounted in the current price.

  • He still adopted a conservative approach to 2023 by applying the Q4 growth rate of 18% for total revenue to the entire next year.

  • He liked the ~$60 billion experience management market addressed by Qualtrics and thinks its software can help its customers as the global economy battled inflation, war, supply chain disruption, and higher interest rates.

  • He cut his 2022, 2023, and 2024 non-GAAP EPS estimates.

  • BMO Capital analyst Keith Bachman reiterated Outperform based on confidence in XM's tech platform and valuation. Bachman reduced the price target to $14.50 from $16.00. A few days back, Bachman reduced XM's price target to $16 from $32.

  • XM remained in his Tier 3 (lowest level) of Outperform stocks.

  • He acknowledged that XM has a history of beating revenue guidance (meaning conservative guides), but he saw the macro is impacting the outlook, as it will for his coverage universe.

  • Management stated not seeing cancellations, which he considered a vote of confidence on the value derived from XM's solutions by existing customers and reflected the stickiness of the platform.

  • Price Action: XM shares traded lower by 4.23% at $13.13 on the last check Thursday.

Latest Ratings for XM

Date

Firm

Action

From

To

Jan 2022

Canaccord Genuity

Maintains

Buy

Jan 2022

Oppenheimer

Maintains

Outperform

Jan 2022

Barclays

Maintains

Equal-Weight

View More Analyst Ratings for XM

View the Latest Analyst Ratings

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