KeyBanc Upgrades BigCommerce On Enterprise Momentum
Bigcommerce Holdings, Inc.’s (NASDAQ: BIGC) enterprise momentum seems underappreciated, which could lend upside in 2021 and beyond, according to KeyBanc Capital Markets.
The BigCommerce Analyst: Josh Beck upgraded the rating for BigCommerce from Sector Weight to Overweight, while keeping the price target unchanged at $75.
The BigCommerce Thesis: The recent selloff in the company’s stock may have been due to high expectations related to payments and gross merchandise value, Beck said in the note.
“BigCommerce has cemented its role as a mid-market/ enterprise share gainer, in our view, evidenced by three consecutive record quarters of ~400 >$2K ACV net adds, 47% >$2K ACV ARR growth in 4Q20, and commentary that suggests sales cycles remain compressed vs. pre-COVID-19 levels,” the analyst wrote.
“We estimate subscription ARR growth has risen to the 30%+ level aided by new logos, which prompts higher 2021 and 2022 estimates as we expect these trends to persist as retailers modernize e-commerce platforms with elevated urgency following a multiyear acceleration of e-commerce adoption,” he added.
BIGC Price Action: Shares of BigCommerce rose 6.8% to $67.66 on Wednesday.
(Photo: BigCommerce via You Tube)
Latest Ratings for BIGC
Feb 2021 | KeyBanc | Upgrades | Sector Weight | Overweight |
Feb 2021 | Needham | Maintains | Buy | |
Jan 2021 | William Blair | Initiates Coverage On | Market Perform |
View More Analyst Ratings for BIGC
View the Latest Analyst Ratings
See more from Benzinga
BofA Raises Kohl's Target As Activist Investor Group Seeks Board Control
Why This iQIYI Analyst Is Turning Bullish On Chinese Streaming Stock
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
