By Dhirendra Tripathi
Investing.com – Qualtrics (NASDAQ:XM) shares rose more than 2% Wednesday after BofA Securities (NYSE:BAC) upgraded the stock to buy with a $45 target.
BofA analyst Daniel Bartus attributed its optimism to the company’s valuations being attractive and its revenue growth looking sustainable.
Bartus said the positives include the company’s "leadership position in an emerging CX (customer experience) market and the SAP relationship extending Qualtrics' reach."
Qualtrics makes software that helps companies engage better with their consumers and employees. The company went public in February.
"With Qualtrics appearing more and more like the potential category winner with likely sustainable 30%+ growth, we view the valuation (which remains a premium) as more justified," the analyst wrote.
Co-headquartered in Seattle, Washington, and Provo, Utah, Qualtrics raised its outlook for 2021 last month.
It expects January-December total revenue to come between $980 million and $984 million, compared to an earlier forecast of $950 million to $954 million given on March 9.
Its total revenue in the quarter was $238.6 million, up 36% from $176.1 million in the same quarter a year ago. It had expected the March quarter revenue to come between $226 million and $228 million.