BofA Upgrades Qualtrics On Secular Tailwinds

Qualtrics International Inc XM is executing well and has a leadership position in an emerging customer experience market, according to BofA Securities.

The Qualtrics International Analyst: Daniel Bartus upgraded the rating for Qualtrics International from Neutral to Buy, while raising the price target from $43 to $45.

The Qualtrics International Thesis: The 20% decline in the stock, despite the company reporting strong first-quarter results, “presents an attractive entry point,” Bartus said in the upgrade note.

Another positive is the SAP SE SAP relationship extending the company’s reach, he noted.

“We are also now more constructive on Qualtrics’ opportunity to consolidate disparate XM solutions and the valuation is now more supportive,” the analyst wrote.

“With Qualtrics appearing more and more like the potential category winner with likely sustainable 30%+ growth, we view the valuation (which remains a premium) as more justified,” Bartus further stated.

XM Price Action: Shares of Qualtrics International had risen by 4.09% to $33.60 at the time of publication Wednesday.

(Photo: Qualtrics)