Why Did KeyBanc Upgrade Anaplan Inc’s Stock?

By Austin Angelo

In a report released yesterday, Brent Bracelin from KeyBanc upgraded Anaplan Inc (PLANResearch Report) to Buy, with a price target of $57. The company’s shares closed yesterday at $47.38, close to its 52-week high of $47.72.

Bracelin noted:

“We are upgrading PLAN to Overweight and raising estimates based on increasing confidence in the upside levers to revenue after seeing three quarters of accelerating billings growth, consistent subscription growth of 42-45% for the past year, and proprietary jobs data that exposes strong hiring trends at Deloitte that could help further elevate PLAN as a key enabler of broader digital transformation initiatives. We are establishing a $57 price target on a DCF applying 41x CY23E EV/FCF, discounted back by 15%. Accelerating growth metrics have lowered sales execution risks. Three consecutive quarters of accelerating billings that topped 58% last quarter alongside NRR above 120% have alleviated initial sales execution concerns that the Company faced at the time of the IPO.”

According to TipRanks.com, Bracelin is a top 25 analyst with an average return of 28.9% and a 75.8% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies, Coupa Software Inc, and Salesforce.com.

Currently, the analyst consensus on Anaplan Inc is a Strong Buy with an average price target of $53, an 11.9% upside from current levels. In a report issued on May 28, Monness also maintained a Buy rating on the stock with a $62 price target.

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Based on Anaplan Inc’s latest earnings release for the quarter ending April 30, the company reported a quarterly GAAP net loss of $37.19 million. In comparison, last year the company had a GAAP net loss of $26.18 million.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock.

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Anaplan, Inc. engages in the provision of cloud-based connected planning platform that helps connect organizations and people to make better and faster decisions. It also offers professional services, including consulting, implementation, and training.