Smartsheet price target lowered to $48 from $52 at BMO Capital

BMO Capital lowered the firm’s price target on Smartsheet to $48 from $52 but keeps an Outperform rating on the shares ahead of its Q4 results. The company can deliver modest upside to January quarter billings and revenues, though the FY25 consensus billings and revenue estimates are likely “too high” and will move lower, the analyst tells investors in a research note. The stock has an attractive valuation based on next-12-months expected free cash flow to growth multiples, but given concerns about the direction of FY25 estimates and the longer-term competitive nature of the market segment, the firm is reducing its price target, BMO added.