Domo (NASDAQ:DOMO) Price Target Lowered to $7.00 at Lake Street Capital

Key Points

• Lake Street Capital cut its price target on Domo to $7 and kept a "hold" rating, part of several recent downgrades that leave Domo with a consensus "Hold" rating and an average target of about $8.64.
• Domo beat Q4 estimates—EPS $0.03 vs. a consensus loss and revenue $79.6M—and reported record Q4 billings and strong retention, sparking heavy volume and a rally, but management's FY‑2027 revenue guide (~$317M) missed expectations (~$353M) and analysts point to debt levels and notable short interest as key risks.

Domo (NASDAQ:DOMO - Get Free Report) had its target price decreased by investment analysts at Lake Street Capital from $13.00 to $7.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. Lake Street Capital's price target would suggest a potential upside of 40.99% from the stock's previous close.

Several other analysts have also recently commented on the stock. Wall Street Zen cut shares of Domo from a "buy" rating to a "hold" rating in a research note on Sunday, December 21st. DA Davidson decreased their price objective on Domo from $10.00 to $6.00 and set a "neutral" rating on the stock in a report on Wednesday. Citizens Jmp reiterated an "underperform" rating and issued a $3.50 target price on shares of Domo in a research note on Friday, February 13th. Cantor Fitzgerald reduced their target price on Domo from $13.00 to $8.00 and set an "overweight" rating on the stock in a research report on Wednesday. Finally, TD Cowen lowered their price target on Domo from $16.00 to $9.00 and set a "buy" rating for the company in a report on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Domo currently has an average rating of "Hold" and a consensus target price of $8.64.

Domo Stock Performance

Domo stock traded up $0.59 during midday trading on Wednesday, reaching $4.97. 23,243,222 shares of the company were exchanged, compared to its average volume of 1,833,107. The firm's 50-day simple moving average is $5.60 and its 200-day simple moving average is $10.40. Domo has a 1 year low of $3.45 and a 1 year high of $18.49. The company has a market capitalization of $207.54 million, a price-to-earnings ratio of -2.91 and a beta of 1.70.

Domo (NASDAQ:DOMO - Get Free Report) last released its quarterly earnings results on Tuesday, March 10th. The company reported $0.03 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.03) by $0.06. The firm had revenue of $79.63 million for the quarter, compared to analyst estimates of $78.65 million. The firm's quarterly revenue was up 1% on a year-over-year basis. On average, analysts forecast that Domo will post -2.1 EPS for the current fiscal year.

Institutional Investors Weigh In On Domo

Several institutional investors and hedge funds have recently added to or reduced their stakes in DOMO. State of Alaska Department of Revenue purchased a new position in shares of Domo in the 3rd quarter worth about $25,000. Global Wealth Strategies & Associates acquired a new stake in Domo during the 4th quarter worth approximately $28,000. Headlands Technologies LLC purchased a new position in Domo in the second quarter valued at approximately $42,000. Pilgrim Partners Asia Pte Ltd purchased a new position in Domo in the third quarter valued at approximately $70,000. Finally, Andina Capital Management LLC purchased a new stake in Domo during the fourth quarter worth approximately $84,000. 76.64% of the stock is currently owned by institutional investors and hedge funds.

Domo News Roundup

Here are the key news stories impacting Domo this week:

• Positive Sentiment: Beating estimates: Domo reported adjusted EPS of $0.03 vs. a consensus loss and revenue of $79.6M, topping Street estimates — a primary catalyst for the rally. Business Wire Q4 Release
• Positive Sentiment: Strong billings and retention: Management reported record Q4 billings of $111.2M, 88% gross retention, subscription revenue growth and an 8% increase in Subscription RPO — signals of healthy customer momentum. MSN: AI strategy & billings
• Positive Sentiment: Market reaction: The beat and metrics drove a sharp after-hours/premarket pop and heavy volume as traders repositioned into the stock. Benzinga: Movers/Premarket
• Neutral Sentiment: Analyst tone mixed: Some firms kept positive ratings but trimmed price targets (e.g., Cantor Fitzgerald cut its PT while maintaining an overweight rating), reflecting cautious optimism. Benzinga: Price target update
• Neutral Sentiment: Analyst caution: Several analysts adopted a wait‑and‑watch stance despite the quarter, signaling that the beat may not yet change longer‑term conviction. Seeking Alpha: Analyst reaction
• Negative Sentiment: Light FY‑2027 revenue guide: Management issued FY‑2027 revenue guidance (~$317M) below consensus (~$353M), a clear headwind that can limit the rally unless growth outlook improves.
• Negative Sentiment: Debt and competitive risks: Commentators note substantial company debt, competitive headwinds and existing bearish analyst ratings that could cap upside. Blockonomi: Debt concerns
• Negative Sentiment: Short interest: Although reported short interest has shifted month-to-month, a meaningful percentage of the float remains shorted, which can add volatility and pressure if fundamentals disappoint.

About Domo

Domo, Inc NASDAQ: DOMO is a cloud-based software company that specializes in business intelligence and data analytics. The company's flagship product, the Domo Business Cloud, provides organizations with an end-to-end platform to integrate, visualize and analyze data from a wide array of sources. By unifying disparate data feeds into interactive dashboards and custom applications, Domo enables real-time insights that inform decision-making across all levels of an enterprise.

Founded in 2010 by Josh James, Domo is headquartered in American Fork, Utah, and operates offices across North America, Europe and Asia Pacific.

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