Shares of
Smartsheet Inc.
were falling early on Thursday after the cloud work-management platform reported disappointing results. Some analysts say the stock is still a buy.
Smartsheet
(ticker: SMAR) was down 17.9% to $40.24 in the premarket. The company’s earnings beat estimates, but billings came in below expectations.
The shares have climbed almost 25% this year, as of Wednesday’s close, but the gains could be almost entirely wiped out if the premarket price holds through the day.
Guggenheim analysts led by John DiFucci said the company’s valuation, as based on discounted cash flow, is compelling. They give the stock a price target of $57 and a Buy rating.
KeyBanc lowered its price target to $52 from $53 after the results, but kept its Overweight rating on the shares.
“We remain encouraged by the company’s continued focus and improvements in profitability,” KeyBanc analysts led by Jason Celino wrote.
RBC Capital Markets reduced its price target for Smartshetts to $43 from $49 and maintained a Sector Perform rating.
Smartsheet reported adjusted earnings of 18 cents per share in its fiscal first quarter, beating analysts’ estimate of 8 cents per share, according to FactSet data.
Write to Brian Swint at [email protected]
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