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Raymond James Cautions on EverCommerce (EVCM) Growth as Insider Ownership and Liquidity Headwinds Loom
Yahoo Finance· 2026-01-19 13:01
Core Viewpoint - EverCommerce Inc. (NASDAQ:EVCM) is considered an overlooked growth stock, but recent downgrades by analysts suggest limited short-term growth potential due to liquidity issues and high insider ownership [1][2][3]. Group 1: Analyst Ratings - Raymond James downgraded EverCommerce from Outperform to Market Perform, citing a 15% stock gain over the last six months and capped growth potential [1]. - RBC Capital also downgraded its rating from Outperform to Sector Perform while maintaining a $12 price target, indicating the stock is now fairly valued after a 50% rally from November lows [2]. Group 2: Financial Performance - For Q3 2025, EverCommerce reported total revenue of $147.5 million, reflecting a 5.3% year-over-year growth, which aligns with the company's guidance [3]. - The core SaaS revenue grew by over 8%, with subscription and transaction revenue contributing $142.2 million, marking a 4.4% increase compared to the previous year [3]. Group 3: Company Overview - EverCommerce provides integrated SaaS solutions for service-based small and medium-sized businesses both in the US and internationally [4].