Anaplan Jumps 8% As Cloud Demand Fuels 3Q Beat; Monness Lifts PT

Shares of Anaplan closed 8% higher on Tuesday after the cloud-based planning software maker reported better-than-expected 3Q results and raised its fiscal 2021 outlook. The company posted an adjusted loss of $0.05 per share, which was narrower than analysts’ expectations of a loss of $0.10 as well as the year-ago quarter’s loss of $0.08.

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Anaplan’s (PLAN) 3Q revenues increased 28% to $114.9 million year-on-year and beat Street estimates of $109.6 million. “We delivered a strong quarter as companies prioritize investments towards initiatives that drive incremental business value,” said Analplan CEO Frank Calderoni. “By using our Connected Planning platform, our customers stay ahead of their competition with the ability to adjust and adapt quickly to an ever changing environment.”

Buoyed by stronger-than-expected 3Q results, Anaplan raised its fiscal 2021 revenue guidance range to $444 million – $445 million from $437 million – $439 million. For 4Q, Anaplan forecasts revenues to be $118.5 million – $119.5 million. The company projects 4Q billings in the range of $152 million – $153 million. (See PLAN stock analysis on TipRanks)

Following the earnings, Monness analyst Brian White raised the stock’s price target to $80 (19% upside potential) from $74 and reiterated a Buy rating. In a note to investors, White wrote that the COVID-19 pandemic “has proven to be a catalyst for accelerated digital transformation and we expect Anaplan to begin to benefit over the next 12-18 months.”

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 12 Buys, 5 Holds and 1 Sell. The average price target stands at $69.28 and implies upside potential of about 3.1% to current levels. Shares have increased by about 28.3% year-to-date.