Everbridge (EVBG – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Terry Tillman from Truist Financial remains neutral on the stock and has a $20.00 price target.
Terry Tillman’s Hold rating for Everbridge (EVBG) is founded on various factors. The company demonstrated strong Q3 results, surpassing estimates in revenue and profitability. Some of the key highlights include its highest year-to-date bookings quarter, a 16% year-on-year increase in sales productivity, and further expansion in adjusted EBITDA margin. Despite these strengths, Tillman notes a slight decrease in revenue outlook, attributed to challenges in the non-subscription business. The company’s commitment to profitability is viewed positively, but the lowered revenue outlook contributes to maintaining the Hold rating.
Furthermore, persistent macroeconomic concerns also played a role in Tillman’s Hold rating. Everbridge’s Q3 report showed total revenue of $114.2 million, which represented a 2.5% year-on-year increase and was slightly above the forecast. The non-GAAP gross margin also exceeded estimates, as did the non-GAAP operating margin. However, despite the company’s confidence in generating free cash flow and its commitment to reducing outstanding debt, the net debt of $259.4 million remains a concern. The company’s continued investment in growth, while also planning to retire $63 million of debt due in December 2024, is noted, but the overall financial health of the company and broader economic worries contribute to the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $20.00 price target.
EVBG’s price has also changed moderately for the past six months – from $26.430 to $20.180, which is a -23.65% drop .
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Everbridge (EVBG) Company Description:
Everbridge, Inc. engages in the development of software solutions for critical event management and enterprise safety applications that automate and accelerate an organization’s operational response to critical events. Its SaaS-based CEM platform enables customers to aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes, and track progress on executing response plans. The company was founded by Cinta Putra and Steve Kirchmeier in 2002 and is headquartered in Burlington, MA.
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