Tuesday, Stifel reiterated its Buy rating on shares of Intapp, Inc (NASDAQ:INTA), with a consistent price target of $45.00. The firm's announcement followed Intapp's release of Intapp Assist for Terms, featuring the new generative AI capability, Ask Intapp. This feature aims to streamline professionals' adherence to client contractual obligations by providing immediate responses to inquiries within Microsoft (NASDAQ:MSFT) Teams.
Intapp Assist for Terms leverages generative AI to manage a firm's data within Intapp Terms, enhancing compliance with external counsel guidelines across the client lifecycle. The introduction of Ask Intapp and Intapp Assist is expected to bolster top-line revenue and client satisfaction by embedding compliance into routine operations.
The new Intapp Assist for Terms and Ask Intapp are now accessible for firms as part of the Intapp Terms cloud deployment. By integrating these tools, Intapp continues to innovate in the legal and professional services sectors, offering solutions that simplify and improve the compliance process.
The stock price target set by Stifel reflects confidence in Intapp's potential for growth, underpinned by the company's strategic focus on AI and cloud-based solutions. With the stock price at $32.62, the firm's target suggests a significant upside for investors.
Intapp's latest product offerings highlight the company's commitment to leveraging technology to address the specific needs of professional service firms, potentially setting a new standard for compliance and operational efficiency within the industry.
In other recent news, Intapp reported a 20% year-over-year increase in total revenue for the fiscal third quarter of 2024, reaching $110.6 million. The company's cloud Annual Recurring Revenue (ARR) grew to $274.2 million, making up 72% of total ARR, while SaaS and support revenue saw a 22% rise to $80.8 million. Intapp also announced strategic acquisitions, including Transform Data International (TDI), and the introduction of new generative AI capabilities.
In terms of analyst attention, Oppenheimer downgraded Intapp's stock from Outperform to Perform, citing concerns over increased competition and challenges within the AI industry. The firm also removed its previous $42 price target for the company.
In other company developments, Intapp's software was selected by Argonaut Private Equity to automate the oversight of personal trading activities, aiming to simplify compliance and reduce time spent on manual processes.
Looking ahead, Intapp projects Q4 SaaS and support revenue to be between $83.5 million and $84.5 million, and total revenue to range from $111 million to $112 million. For the full fiscal year 2024, the projections are $314.5 million to $315.5 million for SaaS and support revenue, and $427 million to $428 million for total revenue.
InvestingPro Insights
As Intapp, Inc (NASDAQ:INTA) continues to push the boundaries of AI and compliance within the professional services industry, InvestingPro data and tips offer a deeper look into the company's financial health and market potential. With a market capitalization of $2.4 billion and a notable revenue growth of 23.81% in the last twelve months as of Q3 2024, Intapp appears to be expanding its market presence. This growth is further evidenced by the company's gross profit margin of nearly 70%, indicating a strong ability to convert revenue into profit.
InvestingPro Tips reveal that analysts are optimistic about Intapp's future, with 10 analysts revising their earnings upwards for the upcoming period, suggesting potential for continued growth. Additionally, the company holds more cash than debt on its balance sheet, which could provide financial flexibility and stability. However, it's worth noting that Intapp is trading at a high Price / Book multiple of 6.21, which may be a point of consideration for value-focused investors.
Despite not being profitable over the last twelve months, analysts predict that the company will turn a profit this year. This anticipated shift towards profitability, combined with the recent product launches aimed at streamlining compliance processes, could be the catalysts for Intapp's stock to reach the fair value estimates ranging from InvestingPro's $27.53 to analyst targets of $48. For investors seeking additional insights, there are over five additional InvestingPro Tips available, which could further inform investment decisions regarding Intapp, Inc.
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