Envestnet price target lowered to $72 from $74 at DA Davidson

DA Davidson lowered the firm’s price target on Envestnet to $72 from $74 but keeps a Buy rating on the shares. The company’s Q2 revenue was just shy of consensus, but EBITDA outperformed, the analyst tells investors in a research note. The firm is forecasting that Envestnet can generate compound annual organic growth in total revenue of 7%-10%, but compound annual growth in adjusted EBITDA of 19% due to the re-expansion of margins to roughly 25% of revenue in 2025.