On Friday, Baird adjusted its outlook on Amplitude Inc (NASDAQ:AMPL), reducing the share price target from $12.00 to $10.00, while maintaining a Neutral rating. The adjustment follows Amplitude's recent financial report, which indicated a strong quarter with revenue and profitability exceeding expectations.
The company, which had to navigate the effects of its exit from Russia, nevertheless raised its full-year revenue guidance. Its profitability guidance would have remained unchanged if not for the Russian market departure. The analyst from Baird noted that Amplitude's underlying business momentum seems to be strengthening as go-to-market (GTM) changes are implemented.
Despite a change in the Chief Financial Officer (CFO) position, which has led to the postponement of the expected analyst day until the first half of 2025, the firm's execution has been commended. The analyst expressed optimism about Amplitude's performance and suggested that the downside risk for the stock is limited. They highlighted the stock's valuation, which is slightly above 2 times its enterprise value to revenue (EV/Revenue).
The firm is scheduled to engage with Amplitude's management next month to gain a clearer understanding of the company's potential turnaround. This meeting is anticipated to provide further insights into Amplitude's future direction and operational strategies.
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