April quarter earnings continue this week in Needham's broader Enterprise Software space with Salesforce, Inc CRM, UiPath, Inc PATH, Phreesia Inc PHR, and Veeva Systems Inc VEEV declaring their results shortly.
Sentiment within Needham's broader universe markedly improved last week, with the IGV up 5.6% for the week with several stocks up more than 10%, versus recent weekly trends that have been lower for nearly two months.
The NASDAQ was up 5.7% for the week and the S&P 500 up 4.9%.
Within the Digital Health segment, the set-up for PHR and VEEV is attractive, heading into each company's respective 1QF23 print analyst Scott Berg observed.
With PHR management's right-sized investor expectations for growth investments, Berg expects 1QF23 to be the low watermark for adjusted EBITDA checks indicating that hiring has slowed over the past quarter.
Berg expects strength in subscription and life sciences to offset any payment processing weakness on the top line.
For VEEV, strong customer wins announced over the past quarter will alleviate investor concerns around the FY23 guidance.
While concerns around the growth deceleration in the commercial cloud are likely to persist, Berg expects Vault strength to offset.
The above, along with strong FCF generation and discounted valuation, make current levels an attractive entry point Berg observed.
Berg remained positive on PATH, noting the current labor shortages and broader inflation concerns as incremental demand drivers for its process automation platform.
Berg remains cautious on CRM even though its valuation appears attractive.
While Berg's industry work suggests the large Digital Transformation deal environment has returned for CRM, he continues to hear Marketing and Commerce Clouds experiencing competitive pressures.
Berg waited on the company's ability to drive operating margin expansion consistently.
Price Action: CRM shares traded lower by 0.42% at $164.40 on the last check Tuesday.
Photo via Wikimedia Commons
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.