And Stifel Other changes include: Stifel’s Suthan Sukumar to $15 from $14 with a “buy” rating.
“CVO delivered a beat-and-raise print for FQ3,” said Mr. Sukumar. “Revenues were modestly ahead and reflected early-signs of a broader demand recovery amidst a still challenging macro backdrop, while a stronger outperformance in operating losses underscores improving operating leverage with the company reaffirming positive cash-flows next year (while break-even year-to-date). Importantly, CVO’s new GenAI offering (launched in mid-Dec) accounted for 20 per cent of total bookings with an acceleration in signings. Notably, this momentum to-date remains driven by existing customers, but with adoption now increasingly across all solutions areas – i.e. service, workplace, websites, and commerce, vs. CVO’s initial focus on service – we believe this bodes well for net-new customer traction with potential for larger-scale deals as CVO executes on their go-to-market plan. We raise our target price to $15/share given strong execution with growing proof points on the GenAI scale opportunity, which continues to suggest upside to current Street expectations, in our view.”