inContact (NASDAQ:SAAS) was downgraded by stock analysts at Benchmark Co. from a “buy” rating to a “hold” rating in a report issued on Friday, Stock Ratings Network reports. They currently have a $9.00 price objective on the stock. Benchmark Co.’s target price indicates a potential downside of 6.44% from the stock’s previous close.
The analysts wrote, “Last night, inContact delivered 2Q results that missed the Street consensus on both total revenue and software revenue, and missed our respective Street high forecasts by a wider margin. The shortfall was attributed to lower customer utilization (i.e., same store sales) and to longer product implementation cycles, particularly in larger engagements. Management sees these trends continuing for the balance of the year, so it lowered its forward outlook. As a result, we are reducing our rating to Hold from Buy. While we’ve never been big fans of after-the-fact downgrades, it’s our experience that execution issues are often more than discrete one quarter events. So while we’re still big believers in the story and inContact’s longer-term market opportunity, we expect the stock to bounce around the $8 to $9 range for the next quarter or two, which given yesterday’s $9.62 closing price, suggests that our new Hold rating is appropriate. Our $9 price target represents multiples of 2.8x EV/total revenue and 5.1x EV/software revenue on our respective 2014 estimates, which is relatively in line with inContact’s small cap SaaS peer group.”
Shares of inContact (NASDAQ:SAAS) opened at 9.62 on Friday. inContact has a one year low of $4.74 and a one year high of $9.77. The stock’s 50-day moving average is currently $8.47. The company’s market cap is $513.3 million.
inContact, Inc (NASDAQ:SAAS) is a provider of cloud-based contact center solutions.