Instructure price target lowered to $28 from $32 at KeyBanc

KeyBanc lowered the firm’s price target on Instructure to $28 from $32 to reflect a more moderated near-term growth outlook, while keeping an Overweight rating on the shares. The firm notes Instructure posted slightly better Q4 results, though the 2024 revenue growth outlook, inclusive of the Parchment acquisition, was more moderated. It expects ARR for the combined Instructure and Parchment business to grow high single-digit in 2024, which implies a downtick in its organic business and below KeyBanc’s expectations of 10%.