Amplitude price target lowered to $18 from $20 at BofA

BofA analyst Koji Ikeda lowered the firm’s price target on Amplitude to $18 from $20 and keeps a Buy rating on the shares after the company disclosed that a 13% reduction in force was approved by the company’s board on April 3. While the workforce reduction should accelerate Amplitude’s path to profitability, the majority of the 99 impacted employees are in the go-to-market organization, which could imply that pipeline build and bookings momentum may have become more impacted since its Q4 earnings report. Management did not reiterate its Q1 or 2023 guidance in conjunction with the announcement, which raises the question if there are heightened risks to revenue estimates, added the firm, which lowered its own revenue forecast to the low-end of guidance for Q1 and 2023.