FiscalNote price target lowered to $2.50 from $6 at Roth MKM

Roth MKM lowered the firm’s price target on FiscalNote to $2.50 from $6 on slowing growth, while keeping a Buy rating on the shares. The firm notes FiscalNote’s Q3 revenues were narrowly below its forecast, but aggressive cost-cutting yielded its first AEBITDA positive quarter. However, macro pressures left Q4 revenue and AEBITDA guidance cut and Roth’s 2024 forecasts lower. The CEO’s signaled interested in potentially taking FiscalNote private, along with a new $100M shelf filing appear to be leading investors to fear greater internal problems than admitted, the firm adds. Roth, however, would defend shares as cash flow positive appears achievable in the second half of 2024.