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Compass starts AvidXchange at Neutral into expected outlook cut

Compass Point last night initiated coverage of AvidXchange with a Neutral rating and $8 price target. AvidXchange is an accounts payable business to business payment and software provider to middle market companies with annual revenues of $5M-$1B, the analyst tells investors in a research note. The firm believes the company is likely to cut revenue guidance in Q3 given slowing industry transaction and volume data in addition to some gross payment segment take rate pressure.

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