On Friday, Jefferies made adjustments to its outlook on Smartsheet Inc . (NYSE: NYSE:SMAR), reducing the price target to $50 from the previous $57, while keeping a Buy rating on the stock. The revision follows Smartsheet's financial results, which showed a revenue beat by 1% in the fourth quarter, attributed to continued improvements in the enterprise segment. This occurred despite persistent challenges in small and medium-sized business (SMB) expansions.
The company's guidance for the first quarter and fiscal year 2025 was set 2% below the street's expectations, with projections that do not anticipate a stabilization in the SMB sector. The report from Jefferies suggests that the appointment of a new head of go-to-market (GTM) strategy has the potential to reinvigorate growth, although there might be some near-term adjustments required.
Jefferies expressed optimism that Smartsheet's momentum would increase throughout the year, bolstered by an improving enterprise segment, conservative revenue guidance, and the emerging contribution from product self-discovery and artificial intelligence features. Despite the lowered price target, the firm's stance on Smartsheet remains positive, as reflected in the maintained Buy rating.
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