DA Davidson lowers Amplitude shares target citing limited visibility By Investing.com

On Tuesday, DA Davidson adjusted its price target on Amplitude Inc (NASDAQ:AMPL) shares, reducing it to $9.00 from the previous $10.50, while maintaining a Neutral rating on the stock. The firm cited “limited visibility” as the reason for the price target adjustment ahead of the company’s second-quarter earnings report scheduled for August 8, 2024.

The revision reflects the firm’s caution regarding the product analytics market and its prospects for Amplitude. The new price target is based on a valuation of 3 times the company’s projected 2025 revenue. This change comes as investors and analysts alike look ahead to Amplitude’s upcoming financial disclosures.

Amplitude Inc, which operates within the product analytics sector, is anticipated to reveal details about its financial performance and possibly provide guidance on future expectations in its forthcoming earnings release. The market will be watching closely to see how the company is navigating the current economic environment and any challenges it faces within its industry.

DA Davidson’s stance remains unchanged at Neutral, suggesting that the firm does not see a compelling buying or selling opportunity at the current time. The price target adjustment to $9.00 represents the firm’s measured outlook on the company’s value based on available data.

Investors in Amplitude Inc and those following the stock will likely take note of DA Davidson’s updated position as they evaluate their own expectations for the company’s financial health and market performance. The next significant date for these stakeholders is August 8, 2024, when Amplitude is set to share its second-quarter earnings results.

In other recent news, Amplitude Inc. has seen several significant developments. The company’s CFO, Christopher Harms, has stepped down and a search for his replacement is currently underway.

Despite this change, Amplitude has reaffirmed its financial outlook for the second quarter and the full fiscal year of 2024, projecting approximately 6% year-over-year revenue growth and a roughly 1% sequential decrease in the second quarter.

Morgan Stanley has reaffirmed its underweight rating for Amplitude, suggesting that substantial growth beyond the company’s conservative guidance is unlikely due to the recent leadership change. The firm’s analysis indicates that the company’s stock is currently trading in line with the median for small and mid-cap companies.

In addition, Amplitude reported a 9% year-over-year increase in its first-quarter revenue, reaching $72.6 million. The company’s annual recurring revenue also saw an uptick, rising to $285 million. These recent developments highlight the ongoing changes and growth within the company.

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