Model N price target lowered to $31 from $37 at Needham

Needham lowered the firm’s price target on Model N to $31 from $37 and keeps a Buy rating on the shares. The company reported a mixed Q3 in which a topline outpeformance was offset by lower than expected adjusted EBITDA and a below consensus guide for FY24, the analyst tells investors in a research note. Model N has certainly come a long way as it has progressed through the SaaS transition over the past 3 years, with 85% of customers now live or in process, but looking ahead to FY24, the company is entering a new transition phase, one in which topline tailwinds are becoming headwinds, the firm added.