Feltl & Company lowers its rating on ServiceSource SREV to Hold from Buy on valuation as it raises its price target to $17 from $16 a share as derived from its DCF model.
Feltl & Company comments, "Our downgrade is primarily based on valuation as we struggle with ServiceSource's long-term margin profile and overall model profitability. Our DCF model fairly
values ServiceSource at $17 per share using top-line growth assumptions that we believe are already aggressive (21% CAGR over 8 years) with long-term gross margins of 54% and a more normalized 12% discount rate. We would be more constructive on buying the stock around $14 per share."
SREV closed at $17.71 a share on Monday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in