tl;dr
BigCommerce Holdings (NASDAQ:BIGC) was downgraded by Goldman Sachs, citing a longer timeframe for the SaaS solutions provider to gain market share in the mid-market enterprise segment. As a result, the stock was trading approximately 5% lower on Monday noon at a price of $7.94. Goldman Sachs reduced...
BigCommerce Holdings (NASDAQ:BIGC) was downgraded by Goldman Sachs, citing a longer timeframe for the SaaS solutions provider to gain market share in the mid-market enterprise segment. As a result, the stock was trading approximately 5% lower on Monday noon at a price of $7.94. Goldman Sachs reduced its recommendation on the stock to Neutral from Buy, with a 15% upside to their updated 12-month price target of $9.50. This shift in rating is attributed to BigCommerce's need to invest in product functionality and go-to-market strategies, as well as the competitive progress made by Shopify in the enterprise segment. Furthermore, the average Seeking Alpha analyst rating of Hold aligns with this downgrade. Notably, BigCommerce's revenue growth has shown a consistent deceleration since the beginning of 2022, with the company facing challenges in gaining market share against its larger competitor, Shopify. As BigCommerce's management focuses on profitability through strategic adjustments, the stock has received a Hold rating from sell-side analysts and the Quant Rating system. A total of 12 Wall Street analysts have graded the stock as Hold, with 2 Strong Buy and 1 Buy ratings in the last 90 days, and an average price target of $11.21. As of now, BIGC is trading 15% below its 200-day simple moving average, with short interest on the stock at 6.73% of the total float.
More about Bigcommerce Holdings Inc
BigCommerce Holdings, Inc. operates a software as a service platform for small, medium, and large businesses in the United States. The company has a market capitalization of $635.35 million and reported a revenue of $297.68 million. The stock performance has seen a decrease of 1.27% and a return on equity of 3.994%. The market sentiment appears neutral with a current stock price of $11.38 and a relatively low RSI of 0.078, indicating a potentially oversold condition. It is important to note that past market behavior is not always a reliable indicator of future performance, and there may be potential risks or uncertainties associated with this analysis.
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