EverCommerce's Financials 'Nice To See': Analysts Gush Over Opportunity, 'Straightforward Growth'

  • 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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