Analyst Derrick Wood of TD Cowen maintained a Hold rating on Domo (DOMO – Research Report), reducing the price target to $9.00.
Derrick Wood has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for Domo. The company reported a solid fourth quarter with a slight increase in billings growth and an operating margin that exceeded expectations. However, the guidance for the first quarter and fiscal year 2026, while showing stronger margins, indicated that billings growth might not accelerate significantly until the second half of the year.
Domo’s focus on consumption pricing and partnerships is showing promise, with the potential to drive future growth. The company’s collaboration with CDW partners is particularly noteworthy, as it is expected to lead to a higher conversion rate for leads and potentially boost billings in the latter half of the fiscal year. Despite these positive signs, the current growth trajectory and the conservative billings guidance suggest that a Hold rating is appropriate at this time, with a revised price target of $9.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $7.00 price target.