Domo Inc drops on Morgan Stanley rating downgrade, PT cut

Domo

20/01/2023 15:17

** Shares of cloud-based platform Domo Inc  DOMO.O  down
nearly 11% at $11.43, slip to over two-year low
    ** Morgan Stanley downgrades stock to "equal-weight" from
"overweight", trims PT by 33% to $16
    ** Brokerage highlights recent sales execution issues, a
tougher spend environment and a wave of executive departures
    ** "We misjudged how quickly operational challenges that
arose in FY23 have materially altered Domo's growth profile,
impacting its ability to accelerate profitability," says Morgan
Stanley
    ** Domo's long-term debt position and negative near-term
profitability profile can elevate downside risk - brokerage
    ** Stock down 20% so far in January vs ~4.4% gain in the
Nasdaq Composite index  .IXIC 
 (Reporting by Ankika Biswas in Bengaluru)
 ((Ankika.Biswas@thomsonreuters.com))