Smartsheet Inc Stock Forecast:
According to the forecasts of 17 analysts, the average target price for Smartsheet Inc’s stock over the next 12 months is USD 44.40, and the average rating from these analysts is Buy. However, Stock Target Advisor‘s analysis of the company’s stock is Bearish, based on 2 positive signals and 5 negative signals. Currently, the stock price of Smartsheet Inc is USD 38.32, which has decreased by -14.65% over the past week, -15.82% over the past month, and -11.30% over the last year.
Analysts Coverage Change:
- Smartsheet Inc has received a target raise from Oppenheimer & Co, from to $55 from $50.
- Needham & Company reiterates a “Buy” rating and maintains its price target of $57.
- RBC maintains its “Sector Perform” rating and raises its price target to $43 from $36.
- KeyBanc Capital Markets maintains its “Overweight” rating and increases its price target to $53 from $48.
- BMO Capital Markets raises its price target for Smartsheet Inc to $50 from $41 on the company’s stock.
Positive Fundamentals:
Smartsheet Inc stock is favored for its high market capitalization and superior revenue growth. The company has a market capitalization that is among the largest in its sector, which suggests that it is a stable company that is likely to withstand market fluctuations. Companies with high market capitalization are generally viewed as more attractive investments because they are often more established and have more resources to invest in growth opportunities.
In addition to its high market capitalization, Smartsheet Inc has shown superior revenue growth in the previous five years when compared to its sector. This suggests that the company is well positioned to continue to grow and expand its operations in the future. Strong revenue growth is often seen as a positive sign by investors as it indicates that the company’s products or services are in demand, and that the company is able to generate more revenue over time.
Negative Fundamentals:
Smartsheet Inc. stock has several characteristics that may not appeal to investors. Firstly, it has high volatility with total returns that have been volatile and above median for its sector over the past five years. This means that the stock price can fluctuate significantly and may not be suitable for investors with a low risk tolerance.
Additionally, the stock is trading at a high price compared to its peers’ median on a price-to-book value basis, indicating that it may be overpriced. This could make it less attractive for investors who are seeking undervalued stocks.
Furthermore, the company had negative total cash flow and negative free cash flow in the most recent four quarters, which could suggest that the company is not generating enough cash to support its operations or invest in future growth opportunities. This could be a red flag for investors who are looking for stable and profitable companies.
Lastly, the stock has shown below median earnings growth in the previous five years compared to its sector, indicating that the company’s earnings growth has been slower than its peers. This may not be attractive for investors who are looking for companies with strong earnings growth potential.
In summary, Smartsheet Inc. stock may not be suitable for all investors due to its high volatility, high price compared to book value, negative cash flow, negative free cash flow, and low earnings growth. It is important for investors to consider their risk tolerance and investment goals before investing in this stock.
FA Score (Fundamental Analysis):
The fundamental Analysis of Smartsheet Inc is “Bearish” with a FA score of 2.9 out of 10, where 0 is very bearish and 10 is very bullish.
