What Is the Average Consensus Price Target for Model N Stock?

Model N: Consensus Price Target Averages $32.50

Executive Summary

Model N, Inc. (NYSE: MODN), a provider of cloud revenue management solutions, has received varying assessments from analysts regarding its stock performance. Despite concerns about growth, most analysts maintain a neutral outlook, with a consensus price target of $32.50.

Growth Concerns Cited

Morgan Stanley Downgrade

Recently, Morgan Stanley downgraded Model N stock from Overweight to Neutral, citing concerns about its growth prospects. The firm lowered its price target to $25 from $30, reflecting its reduced earnings expectations for the company.

Neutral Ratings Prevail

Needham & Company Hold Rating

Needham & Company reiterated its Hold rating on Model N, stating that while it believes in the company’s long-term potential, it remains cautious about near-term growth challenges.

JPMorgan Neutral Stance

JPMorgan Chase & Co. also maintained a Neutral rating, lowering its price target to $25 from $30. The firm expressed concerns about Model N’s ability to maintain its growth momentum.

JMP Securities Market Perform

JMP Securities downgraded Model N from Outperform to Market Perform, adjusting its price target to $30 from $40. The analyst cited uncertainties in the company’s pipeline and competitive pressures.

Robert W. Baird Neutral Outlook

Robert W. Baird reaffirmed its Neutral rating on Model N, reiterating its $30 price target. The firm acknowledges the company’s strong product portfolio but believes its valuation is fair given its growth concerns.

Sector Perform Rating

Royal Bank of Canada

Royal Bank of Canada assigned a Sector Perform rating to Model N with a $30 price target. The firm believes the company has potential but sees limited upside in the near term.

Consensus Price Target

Based on the available ratings, Model N currently has an average consensus price target of $32.50, indicating a moderate level of optimism among analysts. Nine analysts rate the stock with a Hold rating, while two recommend a Buy.

Conclusion

Despite concerns about growth, Model N maintains a Hold rating from most analysts. The consensus price target of $32.50 suggests that there is still upside potential in the stock, but investors should exercise caution due to the company’s growth challenges.