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Qualtrics Surges on Analyst Upgrades Sparked by Earnings

Qualtrics shares jumped Thursday on several analyst upgrades prompted by the company's first-quarter earnings.

Shares of Qualtrics  (XM) - Get Qualtrics International Inc. Report surged Thursday after the customer-relationship software vendor reported a 35% jump in first-quarter revenue that sparked several analyst upgrades and price target increases. 

On Wednesday after the close, Qualtrics reported that revenue for the three months ended March 31 rose 35.4% to a record $238.6 million, up from $176.1 million for the same period a year ago. The company also reported a net loss of $199 million, or 41 cents a share, compared to a loss of $44 million, or 11 cents a share, in the year-ago period.

Shares of the Provo, Utah, and Seattle, Washington-based company were rising 20.7% to $40.83 at last check.

Analysts at Piper Sandler and BMO upgraded the stock following its earnings.

Piper Sandler analyst Brent Bracelin raised Qualtrics to overweight from neutral with a price target of $49 citing the company's growth potential and a favorable risk-reward ratio.

He noted "increasing confidence in durability of subscription growth, unique end-to-end platform, strong leadership and attractive growth trajectory"

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BMO Capital Markets analyst Keith Bachman raised the stock to outperform from market perform and lifted his price target to $45, as he expects “very strong” demand for the firm’s offerings as the economy improves.

Deutsche Bank analyst Patrick Colville said Qualtrics had an impressive start to 2021 and touts customer growth as indicative of the company’s strong competitive positioning.

“Based on our checks, Qualtrics is pulling away from Medallia  (MDLA) - Get Medallia, Inc. Report, SurveyMonkey and other survey vendors," said Colville.

Deutsche Bank has a buy rating on the stock and raised its price target to $43 from $41.

Truist Securities analyst Terry Tillman said Qualtrics' first quarter "represented a continuation of strengthening business trends as well as company-specific execution.”

Truist maintained a buy rating on the stock with a price target of $60.

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