Wall Street Analysts Predict a 28.77% Upside in Domo (DOMO): Here's What You Should Know

Core Viewpoint - Domo (DOMO) shows potential for significant upside, with a mean price target of $10.25 indicating a 28.8% increase from its current price of $7.96, supported by positive earnings estimate revisions and analyst consensus [1][11]. Price Targets and Analyst Estimates - The mean estimate consists of six short-term price targets with a standard deviation of $3, indicating variability among analysts; the lowest estimate suggests a 0.5% increase, while the highest predicts a 101% surge to $16 [2]. - A low standard deviation in price targets suggests strong agreement among analysts regarding the stock's price direction, which can serve as a starting point for further research [9]. Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about Domo's earnings prospects, as evidenced by a 5.6% increase in the Zacks Consensus Estimate over the last 30 days, with three estimates moving higher and no negative revisions [12]. - Domo holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]. Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as empirical research indicates that such targets often mislead investors rather than guide them accurately [3][7]. - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8][10].