Expensify jumps as BofA upgrades to 'buy'

Expensify

18/07/2022 15:30

** Expense management software maker's  EXFY.O  shares rise
~12% to $19.5, after BofA Securities upgrades stock to "buy"
from "neutral" and bumps price target by $5 to $25
    ** BofA analysts say company's lean business model should
enable fast pivots from high growth to high margins as its
primary expense costs are traditional sales and marketing spend,
which can be scaled back
    ** Add co is the best-positioned to gain market share as
peers focus on the larger travel and expense management segment 
    ** EXFY is primarily U.S. focused, generating 90% of total
revenue domestically, and is less exposed to forex challenges
unlike other software peers - BofA
    ** Six of 7 brokerages rate the stock "buy" or higher and 1
"hold"; their median PT is $25 - Refinitiv data
    ** Stock down ~56% YTD 

 (Reporting by Nivedita Balu in Bengaluru)
 ((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;))