In a report released today, David Hynes from Canaccord Genuity maintained a Buy rating on EverCommerce (EVCM – Research Report), with a price target of $13.00.
David Hynes has given his Buy rating due to a combination of factors that highlight EverCommerce’s strong financial performance and strategic initiatives. The company reported a solid quarter with revenue and EBITDA exceeding expectations, showcasing a 7% proforma revenue growth and a record 29% EBITDA margin. Additionally, EverCommerce demonstrated healthy cash conversion, with 78% of EBITDA converting to free cash flow, and a notable increase in customer engagement metrics.
Furthermore, EverCommerce’s decision to divest its Marketing Technology Solutions business is expected to enhance focus on its core vertical SaaS and embedded payments operations, potentially improving growth and financial outcomes. The restructuring of leadership within its divisions aims to streamline operations and improve customer focus. With promising growth targets for 2025 and a valuation that appears attractive, Hynes sees potential for the company to achieve reliable growth, supporting his Buy recommendation.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $15.00 price target.