Analysts slashed their price targets on Duck Creek Technologies Inc (NASDAQ:DCT) following Q2 results. RBC Capital analyst Rishi Jaluria lowered the PT to $25 from $38 (27.6% upside) but kept an Outperform rating.
RBC cited rough Q2 earnings, below-consensus guidance, and deceleration in annual recurring revenue, leading to the stock's decline in the aftermarket. Duck Creek management discussed Q2 deals being deferred due to IT resource shortages and carrier expense concerns.
Needham analyst Mayank Tandon lowered the PT to $27 from $40 (37.8% upside) but kept a Buy. Its Q2 results topped consensus estimates, even though it pushed out several important deals.
Tandon saw a lower near-term subscription growth trajectory over the next few quarters, weighing on the shares in a choppy market. He continues to see Duck Creek as a long-term winner as global insurance carriers focus on moving dated legacy core systems to the cloud.
Raymond James analyst Brian Peterson maintained an Outperform and lowered the PT from $36 to $24 (22.5% upside). The re-rating followed a mixed Q2 and lower than expected new business activity offset by the reiteration of the last stage pipeline.
Peterson saw DCT well positioned to enable the cloud transition for carriers, albeit a bumpy ride noticing the wrong side of that ebb and flow in 2Q net new activity.
JMP Securities and Barclays also cut their price targets on the stock.
Price Action: DCT shares traded lower by 12.2% at $19.45 on the last check Friday.
