Analyst David Hynes of Canaccord Genuity maintained a Buy rating on EverCommerce, with a price target of $14.00.
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David Hynes has given his Buy rating due to a combination of factors including EverCommerce’s strong financial performance and strategic initiatives. The company reported Q3 revenue within the expected range, with profitability exceeding expectations. Organic revenue saw a 5.3% growth, and Adjusted EBITDA margins improved significantly by 620 basis points year-over-year, reaching 31.5%. Additionally, EverCommerce generated $23.3 million in levered free cash flow, with last twelve months free cash flow margins at 19.1%.
Moreover, EverCommerce’s strategic moves, such as the acquisition of ZyraTalk and the sale of its Marketing Technologies business unit, are seen as positive developments. These actions streamline the company’s focus on core competencies and enhance its growth potential. The expansion of the firm’s buyback capacity by $50 million also reflects a strong capital management strategy. With a high-margin payments business and growing multi-product utilization, EverCommerce’s shares are considered reasonably valued, supporting the Buy rating.
In another report released today, Oppenheimer also reiterated a Buy rating on the stock with a $13.00 price target.
Based on the recent corporate insider activity of 126 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EVCM in relation to earlier this year.