Smartsheet price target lowered to $51 from $56 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Smartsheet to $51 from $56 and keeps an Overweight rating on the shares. Q4 billings missed investor expectations, as small-to-midsize business trends worsened, while FY25 annual recurring revenue growth guidance of 14% implies a “things-get-worse” deceleration, the analyst tells investors. However, significant margin and free cash flow upside “should limit downside for shares,” the analyst added.