PowerSchool price target raised to $29 from $27 at RBC Capital

RBC Capital analyst Matthew Hedberg raised the firm’s price target on PowerSchool to $29 from $27 and keeps an Outperform rating on the shares. The company should see "solid" Q4 results driven by cross-sell activity and a demand environment that remains insulated from broader IT macro challenges, the analyst tells investors in a research note. The firm further notes that PowerSchool’s guidance should remain conservative as it expects momentum to continue in 2023, driving durable organic revenue growth and 50-100 bps of annual EBITDA margin expansion.