Citi Starts Avepoint Inc. (AVPT) at Neutral

Citi analyst Fatima Boolani initiates coverage on Avepoint Inc. (NASDAQ: AVPT) with a Neutral rating and a price target of $4.50.

The analyst comments "We initiate coverage on SaaS data protection, governance, lifecycle, and compliance management vendor AVPT at Neutral/High Risk and a $4.5 PT. We are constructive on the company’s $6.5B addressable market for securely and automatedly managing / recovering enterprise data across the IT footprint, meaningful user penetration runway in the ~350M “information worker” market, and successful inroads with a subs/ARR model transition. Yet, this enthusiasm is counterbalanced by mixed financial + operational metrics including software gross margins trailing the cyber peer set, low watermark dollar net retention rates, and bottom quartile sales efficiency within our coverage. Conceding current ~3x EV/S’23 valuation is undemanding, our reservations on competitive moat, sub-scale FCF production history and forward trajectory, and AVPT’s implied “Rule of 40” ~50% below the cyber peers’ ~50% restrain the case for valuation expansion, prompting our muted stock view."

For an analyst ratings summary and ratings history on Avepoint Inc. click here. For more ratings news on Avepoint Inc. click here.

Shares of Avepoint Inc. closed at $4.08 yesterday.

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