What Happened?
Shares of business intelligence platform Domo (NASDAQ: DOMO) jumped 16.3% in the morning session after analysts at TD Cowen upgraded the stock to Buy from Hold and raised their price target to $21.00 from $13.00.
The upgrade is based on the belief that Domo is "turning the corner" on two key strategic initiatives that could fuel sustained growth. According to the analyst firm, these initiatives include a shift to consumption-based pricing and the establishment of partnerships with cloud data warehouses (CDWs). TD Cowen noted that these strategic moves are expected to drive sustainable growth acceleration for the company. The new price target of $21 represents a significant increase and suggests potential upside from the stock's recent trading levels.
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What Is The Market Telling Us
Domo’s shares are very volatile and have had 27 moves greater than 5% over the last year. But moves this big are rare even for Domo and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 5.5% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Domo is up 124% since the beginning of the year, and at $15.89 per share, it is trading close to its 52-week high of $16.69 from August 2025. Investors who bought $1,000 worth of Domo’s shares 5 years ago would now be looking at an investment worth $411.88.
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