Why Are Everbridge Shares Trading Lower Premarket?

Analysts downgraded ratings and cut their price target on Everbridge Inc EVBG following the CEO departure and a disappointing outlook.

• JPMorgan analyst Sterling Auty downgraded to Neutral from Overweight with a price target of $127, down from $200 (10.1% upside).
• Stifel analyst J. Parker Lane downgraded to Hold from Buy with a price target of $100, down from $185 (13.3% downside).
• The company announced the resignation of CEO David Meredith. It offered an initial outlook of 20%-23% revenue growth in 2022, which came in below Street expectations, Lane tells. 
• The analyst says the timing and uncertainty around the circumstances of Meredith's departure combined with the company's guidance "introduces a high degree of uncertainty into the story in the near term." 
• With growth decelerating from 36% in 2021 to 23% in 2022, "there are more questions than answers at this point," contends Lane.
• BofA analyst Brad Sills downgraded to Underperform from Neutral with a price target of $100, down from $175. 
• The analyst cites the company's announcement of the transition of its CEO and its preliminary FY22 revenue growth outlook of 20%-23% - below the consensus of 26%. 
• The CFO and CRO of Everbridge are capable executives, but the CEO transition "creates an overhang" and puts into question the overall future direction of the business, Sills tells.
• Barclays analyst Ryan MacWilliams downgraded to Equal Weight from Overweight with a price target of $90, down from $185 (22% downside). 
• The analyst is surprised by the CEO's resignation, which raises questions on bookings and the company's pipeline.
• Further, MacWilliams says that Everbridge's new fiscal 2022 revenue guidance was below Street estimates.
• Baird analyst William Power downgraded to Neutral from Outperform with a price target of $95, down from $175 (17.7% downside).
• Price Action: EVBG shares traded lower by 30.7% at $80 in the premarket session on the last check Friday.