Given increased evidence of a slowing demand environment, Morgan Stanley has reduced price targets across its SaaS software stock coverage and 2022/2023 earnings estimates by 1%/3% before a potential “ declining growth outlook. “
Morgan Stanley reduced its 2022 billing estimates by 2% on average to consider risk in 2H and used the recent analysis to assess SaaS shrinkage risk pointing to a 2.5-4 point annual headwind in total growth rates for every 10 points headwind to growth in new demand.
Let’s look at the list of Morgan Stanley PT cuts:
- HubSpot (HUBS) PT was reduced to $ 436 from $ 539 with an “overweight” rating. PT indicates a potential increase of 61.46% from the previous closing of the stock.
- Freshworks (FRSH) reduced PT to $ 17 from $ 23 with an “equal weight” rating. PT indicates a potential increase of 33.12% from the previous closing of the stock.
- GoDaddy (GDDY) PT was reduced to $ 91 from $ 95 with an “equal weight” rating. PT indicates a potential increase of 27.61% from the company’s current price.
- ZoomInfo Technologies (ZI) PT was reduced to $ 66 from $ 81, indicating a potential increase of 86.81% from the company’s current price
- Vertex (VERX) PT was reduced to $ 10 from $ 12 with an “underweight” rating. PT indicates a potential downside of 4.85% from the stock’s previous close.
- ServiceNow (NOW) PT cut to $ 575 from $ 594, indicating a potential increase of 38.77% from the current stock price.
- Qualtrics (XM) PT was reduced to $ 18 from $ 43, indicating a potential increase of 43.08% from the company’s current price.
- BigCommerce Holdings (BIGC) PT was reduced to $ 19 from $ 21 with an “equal weight” rating. PT indicates a potential increase of 4.00% from the current stock price.
- Amplitude (AMPL) PT was reduced to $ 18 from $ 23 with an “equal weight” rating. PT indicates a potential increase of 22% from the current stock price.
- LegalZoom.com (LZ) PT has been reduced to $ 12 from a $ 13 “equal weight” rating. PT indicates a potential increase of 23% from the current stock price.
- Matterport (MTTR) PT was reduced to $ 5 from $ 6 with an “equal weight” rating. PT indicates a potential increase of 30.89% from the current stock price.
- Liveramp Holdings (RAMP) PT was reduced to $ 38 from $ 41 with an “overweight” rating. PT indicates a potential increase of 42.38% from the current stock price.
- Sprout Social (SPT) PT cut to $ 66 from $ 70, indicating a potential increase of 18.77% from the current stock price.
- UserTesting (USER) PT was reduced to $ 9 from $ 11, indicating a potential increase of 59.29% from the company’s current price.
- Wix.Com (WIX) PT was reduced to $ 77 from $ 85 with an “equal weight” rating. PT indicates a potential increase of 24.11% from the company’s current price.
- Zeta Global Holding (ZETA) PT was reduced to $ 6.50 from $ 9.50 with an “equal weight” rating. PT indicates a potential increase of 46.72% from the company’s current price.
ServiceNow (NOW) stock fell more than 12% on Tuesday after Chief Executive Bill McDermott said the company’s sales cycle in Europe could be lengthening.
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