EverCommerce's Financials 'Nice To See': Analysts Gush Over Opportunity, 'Straightforward Growth' - EverCommerce (NASDAQ:EVCM)

JMP Securities analyst Patrick Walravens reiterates EverCommerce Inc EVCM with a Market Outperform and a $17 price target.
The re-rating reflects strong 4Q22 results leaving the stock up 2% in the aftermarket after having increased ~20% YTD versus an ~9% increase for the Nasdaq.
Guidance was below the consensus for 1Q but in line for the year.
Walravens likes EverCommerce. Despite many solutions across multiple verticals, EverCommerce runs a relatively straightforward growth algorithm and customer motion.
Secondly, over time, this business should generate consistent mid-teens top-line growth with expanding margins, particularly as it gets past the hit to the cost structure of being public and the impact of the DrChrono acquisition in November 2021.
RBC Capital analyst Matthew Hedberg maintains EverCommerce with an Outperform, raising the price target from $11 to $12.
Hedberg liked seeing outperformance in the quarter and a consistent outlook, which implies signs of stabilization in the marketing service solutions business following two softer quarters and increases his confidence around execution.
The analyst also liked the continued focus on profitable growth, with ongoing investment in critical areas like payments, which the company remains upbeat around while keeping an eye on expenses.
The outlook was framed as prudent and reflected some macro softness, though it appears to reflect stabilization vs. a continued trend deterioration.
The company remains active in repurchasing shares.
Overall, Hedberg believes EverCommerce remains in front of a significant new customer and cross and up-sell opportunity as it works to provide a system of action software and digitize the service economy.
Price Action: EVCM shares traded higher by 17.30% at $10.51 on the last check Thursday.

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