Domo Inc: TD Cowen cuts to hold from buy; cuts target price to $3.25 from $6

TD Cowen has downgraded Domo Inc (NASDAQ:DOMO) from Buy to Hold and simultaneously lowered its price target to $3.25 from $6.00, reflecting a more cautious outlook on the company’s near-term prospects. The adjustment follows a recent third-quarter billings miss attributed to deal slippage and extended sales cycles, including CDW. Despite the downgrade, TD Cowen maintains a positive stance on Domo’s long-term potential, noting progress in net revenue retention as the company transitions to a consumption-based model.

Domo, a cloud-based data analytics platform, reported fiscal year 2026 third-quarter earnings that exceeded expectations, with both revenue and earnings per share outperforming forecasts. However, the stock declined slightly in after-hours trading, despite a year-to-date return of 63.42%. The company’s market capitalization stands at approximately $621.35 million, placing it in the small-cap category.

Analysts highlight ongoing challenges, including insider selling activity and a GF Score™ of 50, indicating average performance across key financial metrics. While Domo’s GF Value™ suggests the stock is undervalued by 58.1%, investors are advised to remain cautious given the mixed signals from both financial performance and market sentiment.