AvidXchange downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded AvidXchange to Neutral from Overweight with a price target of $9, down from $11. The firm says weakness in monetization and volume in Q2 defied its positive thesis that AvidXchange’s business model should be relatively resilient. The company’s political advertising business should boost near-term growth, but lower baseline core growth creates a tougher compare for fiscal 2025 and more pressure on new products like Payments Accelerator to have a strong start at a time when investor skepticism toward new products in the sector is high, the analyst tells investors in a research note. As such, JPMorgan is taking a “wait-and-watch approach.”