Market Overview

Tailwinds For Market-Leader Everbridge Could Sustain 25% Growth

Share:
Tailwinds For Market-Leader Everbridge Could Sustain 25% Growth

Brent Bracelin of Pacific Crest Securities has started coverage of Everbridge, Inc. (NASDAQ: EVBG) with an Overweight rating and $19 price target, saying the company could sustain its more than 25 percent growth.

The growth drivers include: "(1) a rising threat landscape from natural disasters, active shooters and terrorist plots, (2) healthy new customer adds, (3) robust land-and-expand opportunities, and (4) international expansion."

Everbridge provides mass notification applications and has more than 3,000 enterprise customers. According to a recent data form Frost & Sullivan, the mass notification TAM is expected to grow about 20 percent annually to $6.4 billion by 2020 from $2.4 billion in 2015.

Related Link: Raymond James Initiates Coverage On Everbridge, Inc. - Common Stock At Outperform, Announces $20

Bracelin believes the company has multiple levers to support 25 percent-plus subscription growth and expand its reach beyond the $6.4 billion mass notification market once it gains more success in alerting in IT and Internet of Things (IoT).

"Healthy net renewals at 116 percent, in addition to strong new customer adds and expansion opportunities across multiple products, give us confidence that subscription revenue (97 percent of sales) could increase by 25+ percent going forward," Bracelin wrote in a note.

At the time of writing, shares of Everbridge were up 0.37 percent to $15.82. The $19 target implies potential upside of 21 percent.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Posted-In: Brent Bracelin Pacific CrestAnalyst Color Long Ideas Price Target Initiation Analyst Ratings Trading Ideas

 

Related Articles (EVBG)

View Comments and Join the Discussion!

SunOpta's Forecast Looking Brighter

U.S. Dollar Index Extends Gains