Goldman Sachs Initiates Coverage of Model N With Buy Recommendation

Fintel reports that on July 6, 2023, Goldman Sachs initiated coverage of Model N (NYSE:MODN) with a Buy recommendation.

Analyst Price Forecast Suggests 26.77% Upside

As of June 2, 2023, the average one-year price target for Model N is 44.24. The forecasts range from a low of 35.35 to a high of $54.60. The average price target represents an increase of 26.77% from its latest reported closing price of 34.90.

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The projected annual revenue for Model N is 248MM, an increase of 5.11%. The projected annual non-GAAP EPS is 0.95.

What is the Fund Sentiment?

There are 407 funds or institutions reporting positions in Model N. This is an increase of 14 owner(s) or 3.56% in the last quarter. Average portfolio weight of all funds dedicated to MODN is 0.23%, a decrease of 9.86%. Total shares owned by institutions increased in the last three months by 2.78% to 52,509K shares. The put/call ratio of MODN is 1.13, indicating a bearish outlook.

What are Other Shareholders Doing?

Conestoga Capital Advisors holds 3,792K shares representing 9.95% ownership of the company. In it’s prior filing, the firm reported owning 3,773K shares, representing an increase of 0.51%. The firm increased its portfolio allocation in MODN by 74,130.99% over the last quarter.

Neuberger Berman Group holds 2,773K shares representing 7.28% ownership of the company. In it’s prior filing, the firm reported owning 2,996K shares, representing a decrease of 8.05%. The firm decreased its portfolio allocation in MODN by 63.11% over the last quarter.

CCASX – Conestoga Small Cap Fund Investors Class holds 2,567K shares representing 6.74% ownership of the company. No change in the last quarter.

Artisan Partners Limited Partnership holds 2,547K shares representing 6.68% ownership of the company. In it’s prior filing, the firm reported owning 2,591K shares, representing a decrease of 1.72%. The firm decreased its portfolio allocation in MODN by 24.53% over the last quarter.

Clearbridge Investments holds 2,514K shares representing 6.60% ownership of the company. In it’s prior filing, the firm reported owning 2,346K shares, representing an increase of 6.70%. The firm decreased its portfolio allocation in MODN by 14.44% over the last quarter.

Model N Background Information
(This description is provided by the company.)

Model N enables life sciences and high tech companies to drive growth and market share, minimizing revenue leakage throughout the revenue lifecycle. With deep industry expertise and solutions purpose-built for these industries, Model N delivers comprehensive visibility, insight and control over the complexities of commercial operations and compliance. Our integrated cloud solution is proven to automate pricing, incentive and contract decisions to scale business profitably and grow revenue. Model N is trusted across more than 120 countries by the world’s leading pharmaceutical, medical technology, semiconductor, and high tech companies, including Johnson & Johnson, AstraZeneca, Stryker, Seagate Technology, Broadcom and Microchip Technology.

Additional reading:

• MODEL N ANNOUNCES SECOND QUARTER FISCAL YEAR 2023 FINANCIAL RESULTS Total Revenue Grew 18% Year-over-Year SaaS ARR Grew 40% Year-over-Year
• Form of Global Note, representing Model N, Inc.’s 1.875% Convertible Senior Notes due 2028 (included as Exhibit A to the Indenture filed as Exhibit 4.1).
• MODEL N PRICES OFFERING OF $220.0 MILLION OF 1.875% CONVERTIBLE SENIOR NOTES DUE 2028
• MODEL N ANNOUNCES PROPOSED OFFERING OF $220.0 MILLION OF CONVERTIBLE SENIOR NOTES DUE 2028
• MODEL N ANNOUNCES FIRST QUARTER FISCAL YEAR 2023 FINANCIAL RESULTS Total Revenue Grew 15% Year-over-Year SaaS ARR Grew 36% Year-over-Year Net Loss Decreased 35% Year-over-Year Adjusted EBITDA Grew 27% Year-over-Year

This article originally appeared on Fintel