EverCommerce's Financials 'Nice To See': Analysts Gush Over Opportunity, 'Straightforward Growth'

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• JMP Securities analyst Patrick Walravens reiterates EverCommerce Inc (NASDAQ: EVCM) with a Market Outperform and a $17 price target.
• The re-rating reflects strong 4Q22 results leaving the stock up 2% in the aftermarket after having increased ~20% YTD versus an ~9% increase for the Nasdaq.
• Guidance was below the consensus for 1Q but in line for the year.
• Walravens likes EverCommerce. Despite many solutions across multiple verticals, EverCommerce runs a relatively straightforward growth algorithm and customer motion.
• Secondly, over time, this business should generate consistent mid-teens top-line growth with expanding margins, particularly as it gets past the hit to the cost structure of being public and the impact of the DrChrono acquisition in November 2021.
• RBC Capital analyst Matthew Hedberg maintains EverCommerce with an Outperform, raising the price target from $11 to $12.
• Hedberg liked seeing outperformance in the quarter and a consistent outlook, which implies signs of stabilization in the marketing service solutions business following two softer quarters and increases his confidence around execution.
• The analyst also liked the continued focus on profitable growth, with ongoing investment in critical areas like payments, which the company remains upbeat around while keeping an eye on expenses.
• The outlook was framed as prudent and reflected some macro softness, though it appears to reflect stabilization vs. a continued trend deterioration.
• The company remains active in repurchasing shares.
• Overall, Hedberg believes EverCommerce remains in front of a significant new customer and cross and up-sell opportunity as it works to provide a system of action software and digitize the service economy.
• Price Action: EVCM shares traded higher by 17.30% at $10.51 on the last check Thursday.

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