After Piper Jaffray and KeyBanc assigned a Buy rating to Sendgrid Inc in the last month, the company received another Buy, this time from Canaccord Genuity. Analyst Richard Davis maintained a Buy rating on Sendgrid Inc (NASDAQ: SEND) yesterday and set a price target of $33. The company’s shares opened today at $29.05.
Davis commented:
“We recently published a 26-page deep dive into SendGrid’s fundamental and financial outlook, so we won’t reprise those details in this post view note. Instead, we suggest that this firm is better than some might suppose and with results like last night’s, the firm took another step to demonstrating that good stock price performance emerges from companies that sell software that has superior functionality, is easy to deploy and is sold through an efficient G2M model that begins with low cost self-provisioning. We believe SEND is going higher and that is why we have a BUY on this stock. Investment highlights Bullish items. SendGrid delivered a strong second quarter post-IPO with upside to financial guidance on both the top and bottom line; Customer additions were strong at 5.7K, bringing customer count to 69.3K, up 35% y-o-y, and ahead of our 66.7K estimate, while email volume grew 29% y-o-y to 130.4B, representing close to 1.5B emails daily; the cross-sell opportunity remains significant for SendGrid’s Marketing Campaigns offering as a majority (50K+) of its customers currently only use the company’s core Email API product.”
According to TipRanks.com, Davis is a top 25 analyst with an average return of 29.0% and a 77.3% success rate. Davis covers the Technology sector, focusing on stocks such as Altair Engineering Inc, Upland Software, and Microsoft Corp.
Currently, the analyst consensus on Sendgrid Inc is Strong Buy and the average price target is $31.20, representing a 7.4% upside.
In a report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $32 price target.
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The company has a one-year high of $32.03 and a one-year low of $17.50. Currently, Sendgrid Inc has an average volume of 341.9K.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock.
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SendGrid, Inc. provides customer communications platform for transactional and marketing email. The firm’s solutions include sendgrid API, expert services and sendgrid & email marketing campaigns. The company was founded by Isaac Saldana, Tim Jenkins, and Jose Lopez in 2009 and is headquartered in Denver, CO.
