HashiCorp slumps after flagging weak demand, PT cuts from brokerages

Hashicorp

08/12/2023 13:47

** Shares of cloud software vendor HashiCorp Inc  HCP.O 
plunge 24% to $24.9 premarket
    ** TD Cowen downgrades stock to "market perform" from
"outperform" and cuts PT to $23 from $28
    ** BTIG cuts PT to $25 from $33, says "to be blunt, we were
disappointed in the print. We were hoping for a little more
upside in Q3"
    ** At least four other brokerages also cut PT on stock after
company's Q3 results
    ** Customers' buying behavior led to smaller land contracts
and smaller expansion and extension contracts in Q3, says
HashiCorp CFO Navam Welihinda
    ** But company beat Q3 estimates
    ** Macro headwinds not fading, growth visibility to be
constrained for at least a few quarters - TD Cowen
    ** "We move to the sidelines until there is better
visibility into demand conditions and the effectiveness of its
new go-to-market strategies," says TD Cowen
    ** Stock down 9% YTD, as of last close    

    

 (Reporting by Pranav Kashyap in Bengaluru)