Model N just downgraded at JPMorgan, here’s why

JPMorgan downgraded Model N to Neutral from Overweight with a price target of $25, down from $30. The analyst cites the company’s near-term shift in the financial algorithm due to macro pressures for the downgrade. Model N guided to 5% revenue growth in 2024 and mid-teens EBITDA growth, marking a deceleration from 20%-plus annual EBITDA growth the firm had initially been modeling through 2025. JPMorgan says less visibility makes it harder to justify the stock’s premium valuation.