KeyBanc Upgrades BigCommerce On Enterprise Momentum

Bigcommerce Holdings, Inc.’s BIGC enterprise momentum seems underappreciated, which could lend upside in 2021 and beyond, according to KeyBanc Capital Markets.

The BigCommerce Analyst: Josh Beck upgraded the rating for BigCommerce from Sector Weight to Overweight, while keeping the price target unchanged at $75.

The BigCommerce Thesis: The recent selloff in the company’s stock may have been due to high expectations related to payments and gross merchandise value, Beck said in the note.

“BigCommerce has cemented its role as a mid-market/ enterprise share gainer, in our view, evidenced by three consecutive record quarters of ~400 >$2K ACV net adds, 47% >$2K ACV ARR growth in 4Q20, and commentary that suggests sales cycles remain compressed vs. pre-COVID-19 levels,” the analyst wrote.

“We estimate subscription ARR growth has risen to the 30%+ level aided by new logos, which prompts higher 2021 and 2022 estimates as we expect these trends to persist as retailers modernize e-commerce platforms with elevated urgency following a multiyear acceleration of e-commerce adoption,” he added.

BIGC Price Action: Shares of BigCommerce rose 6.8% to $67.66 on Wednesday.

(Photo: BigCommerce via You Tube)