Ryan MacDonald, an analyst from Needham, reiterated the Buy rating on Instructure Holdings (INST – Research Report). The associated price target remains the same with $32.00.
Ryan MacDonald has given his Buy rating due to a combination of factors reflecting Instructure Holdings’ positive performance and strategic shifts. The company’s first-quarter results for fiscal year 2024 exceeded expectations, with revenue and adjusted EBITDA surpassing forecasts, prompting an increase in guidance for the full year. MacDonald acknowledges the early stages of the company’s transition to a “land and expand” go-to-market strategy, which is already yielding results through several multi-product wins, upsells, and successful win-backs within the quarter.
Moreover, MacDonald is optimistic about the potential for deal sizes to grow despite persistent deal elongation and a challenging macroeconomic environment. He attributes the elongation to more strategic conversations around bundled deals, which could lead to larger transactions over time. The analyst remains confident in the management’s financial targets, citing the Rule of 45+ in FY24 and the Rule of 55+ in FY28 as indicative of the company’s strong operational trajectory. Consequently, MacDonald maintains his Buy rating, suggesting that the current stock levels present a buying opportunity.
According to TipRanks, MacDonald is a 4-star analyst with an average return of 7.9% and a 47.05% success rate. MacDonald covers the Technology sector, focusing on stocks such as Model N, Instructure Holdings, and Udemy Inc.
In another report released today, Citi also reiterated a Buy rating on the stock with a $30.00 price target.
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Instructure Holdings (INST) Company Description:
Instructure Holdings Inc is an education technology company dedicated towards helping everyone learn together. it amplify the power of teaching and elevate the learning process, leading to improved student outcomes. The company supports more than 30 million educators and learners at more than 6,000 organizations around the world.
Read More on INST:
- Instructure Reports First Quarter 2024 Financial Results
- Instructure Holdings Announces New Chief Accounting Officer
- Instructure price target lowered to $28 from $31 at Morgan Stanley
- Instructure 2028 targets better than shares discounting, says Baird
- Instructure sees organic CAGR 9%-11% from year-end 2023-2028
