Oppenheimer analyst Koji Ikeda assigned a Buy rating to Model N (MODN) today and set a price target of $23. The company’s shares closed yesterday at $15.55.
Ikeda observed:
“Model N reported good F1Q results that were above consensus estimates and guidance. Positively, management commentary on deal activity and pipeline momentum was good, suggesting the new go-to-market strategy established last quarter is working. On balance, the noise in the billings and deferred revenue metrics (from ASC 606, adjusting contract terms), and management not raising FY2019 guidance after the outperformance in F1Q could weigh on the stock in the near term. Bottom line: We think the F1Q results are a positive data point that suggests our “self- help and under-the-radar value oriented turnaround thesis” on MODN is beginning to take shape. As the good execution seen in F1Q continues in the future, this should lead to better investor sentiment and potential multiples expansion over time.”
According to TipRanks.com, Ikeda is a 5-star analyst with an average return of 36.4% and a 92.9% success rate. Ikeda covers the Technology sector, focusing on stocks such as Coupa Software Inc, BlackLine Inc, and SPS Commerce.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Model N with a $21.50 average price target.
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The company has a one-year high of $20.33 and a one-year low of $12.60. Currently, Model N has an average volume of 244.5K.
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Model N, Inc. engages in the provision of revenue management cloud solutions for the life science and technology industries. It solutions include two complementary suites of software applications: Revenue Management Enterprise and Revenue Management Intelligence.
