Expensify price target lowered to $6 from $7 at Citi

Citi analyst Steven Enders lowered the firm’s price target on Expensify to $6 from $7 and keeps a Buy rating on the shares. Following a challenging 2023, the firm expects “some broadening of software performance” as more dovish monetary policy and stabilizing budgets take hold in 2024. The analyst prefers “growthier names with less estimate risk and a shift in the valuation towards profitability.” Citi is turning more positive on its back office software coverage citing an improving monetary policy backdrop, better budgets, and expanded AI revenue potential. The firm upgraded both Appian (APPN) and Smartsheet (SMAR) to Buy from Neutral. Citi also opened a “90-day negative catalyst watch” on Paylocity (PCTY) and “90-day positive catalyst watch” on Pegasystems (PEGA).