8 Coupa Software Analysts Weigh In After Stock Spikes Following Upbeat Q2 Results

Shares of Coupa Software Inc COUP spiked in Tuesday's after-hours session, after the company reported upbeat financial results and announced a $100 million buyback.

Wells Fargo On Coupa Software

Analyst Michael Turrin maintained an Equal-Weight rating, while reducing the price target from $80 to $65.

“Coupa's 2Q23 earnings report was highlighted by total/subscription billings growth of +21/25% y/y, total/subscription revenue growth of +18/23% and 12% FCF margin,” Turrin said in a note.

“Despite the FQ2 upside, the FY23 growth outlook was left mostly unchanged, calling for total/subscription rev growth of 16%/21% (inc. FQ3 subs billings guide of ~15%), factoring in an expected continuation of Europe-specific headwinds, and leaving room for potential N. America impacts to surface in 2H,” he added.

Piper Sandler On Coupa Software

Analyst Brent Bracelin reiterated a Neutral rating, while raising the price target from $65 to $67.

Despite healthy enterprise bookings, Coupa Software maintained a conservative growth outlook for the second half, Bracelin said. “While COUP has a history of providing conservatism, the 2H outlook does suggest that growth could remain below 20% into next year,” the analyst further wrote.

“We raise our PT to $67 on higher estimates and improving margins,” he added.

Needham On Coupa Software

Analyst Ryan MacDonald reaffirmed a Buy rating and price target of $90.

The company’s quarterly results were “solid,” with an upbeat performance in North America and a deteriorating macro environment in Europe, MacDonald stated.

Despite the strong performance, “the company only modestly increased subscription revenue guidance for the year,” the analyst said. “Overall, we remain positive on COUP given the opportunity for re-accelerating growth in FY24 as the pipeline remains strong for the company both domestically and internationally,” he added.

Check out other analyst stock ratings.

Canaccord Genuity On Coupa Software

Analyst Joseph Vafi maintained a Buy rating and price target of $100.

“Against an incrementally cloudier macro backdrop versus a quarter ago, Coupa continues to execute well, with Q2 results coming in slightly ahead of expectations and with an updated F23 outlook which remains bracketed by the consensus estimate range,” Vafi wrote in a note.

“Importantly, we believe that COUP's competitive moat is only widening and deepening across core procurement, with expansion opportunities continuing to make themselves evident,” he added.

RBC Capital Markets On Coupa Software

Analyst Rishi Jaluria reiterated an Underperform rating and price target of $55.

“Revenue beat consensus by an amount similar to last quarter, while management maintained FY guidance to factor in a layer of macro conservatism (albeit likely not fully de-risked),” Jaluria said in a note.

He added that the fourth quarter will be “the make-or-break quarter,” given Coupa Software’s bookings seasonality.

Raymond James On Coupa Software

Analyst Brian Peterson reaffirmed an Outperform rating, while reducing the price target from $90 to $75.

While the revenue upside was similar to prior quarters, the company exhibited “impressive discipline on margins to drive a significant increase to the bottom line outlook,” Peterson stated.

“While we’ve yet to see demand levels return to pre-pandemic levels, we’re impressed by the F2Q execution in a difficult macro environment, with the company also drawing a line in the sand with a $100M share repurchase authorization,” he added.

JMP Securities On Coupa Software

Analyst Patrick Walravens maintained a Market Perform rating.

While the quarterly results were better than expected, the guidance was mixed, Walravens said. The company’s 18% growth was flat versus the last two quarters but with better operating margins, he added.

BofA Securities On Coupa Software

Analyst Brad Sills reiterated a Buy rating, while raising the price target to $78 from $75.

“Coupa reported healthy Q2 results and outlook in a somewhat difficult macro environment,” Sills wrote in a note.

“Coupa saw continued strength in the North American market across both mid-size and enterprise segments. Adoption of power user apps was healthy across the broader suite, including contracts lifecycle management, sourcing and supplier information,” the analyst further said.

“Guidance for Q3 subs billings of $198mn implies 0.6% q/q and 15% y/y, lighter than 2% q/q in 3Q22 for conservatism, assuming unchanged macro weakness in Europe,” he added.

COUP Price Action: Shares of Coupa Software had risen by 15.46% to $64.45 at the time of publication Wednesday.