Update shared on27 Aug 2025
Fair value Increased 9.20%Domo's price target has been raised to $15.83 as analysts cite the company's successful adoption of consumption-based pricing, strong new cloud partnerships, improved revenue visibility, and increased insider buying as key drivers of its enhanced growth outlook.
Analyst Commentary
- Bullish analysts highlight Domo's successful transition to consumption-based pricing and new partnerships with cloud data warehouses as catalysts for sustained growth acceleration.
- Increasing investor demand for data and infrastructure stocks, combined with Domo's status as an under-the-radar name, is expected to support upward price movement.
- Domo's independence from hyperscalers and role as a sought-after buyable asset in the data infrastructure sector bolster its competitive positioning.
- Improved revenue visibility is evidenced by rising remaining performance obligations (RPO), with growth to 4.6% in fiscal Q1 FY26 signaling stronger future sales.
- Insider confidence is evidenced by repeated stock purchases by the Founder and CEO, reinforcing the belief in the company's capital appreciation potential.
What's in the News
- Domo expanded its cloud integration capabilities with Snowflake, releasing new Magic ETL features, native Snowflake SQL support, enhanced data management flexibility, and improved admin controls for streamlined, secure data workflows.
- Domo deepened its collaboration with Snowflake by offering managed analytics and BI solutions on Snowflake Marketplace, featuring advanced AI integration, 1,000+ data connectors, reverse ETL, and an interactive app platform.
- Later, an influencer platform, adopted Domo’s AI and data platform to manage explosive data growth, enabling faster creator revenue generation and delivering actionable insights for brand partners.
- Domo partnered with Burbio to embed advanced AI-powered analytics into K-12 education data platforms, enabling real-time insights for stakeholders and automating alerts on key market signals.
- Domo was added to major benchmark indices, including multiple Russell Value Indices and the S&P Software & Services Select Industry Index, reflecting increased market recognition.
- Domo showcased its AI and data products platform as an Icon Sponsor at the Databricks Data + AI Summit, emphasizing partnerships and real-world use cases with clients like Sol de Janeiro.
- Domo released the “Data Never Sleeps: AI Edition” infographic, highlighting explosive AI investment growth, increased productivity gains, and rising demand for AI skills in the workforce.
Valuation Changes
Summary of Valuation Changes for Domo
- The Consensus Analyst Price Target has risen from $14.50 to $15.83.
- The Future P/E for Domo has significantly risen from 17.37x to 19.71x.
- The Net Profit Margin for Domo has fallen slightly from 13.51% to 13.03%.
Disclaimer
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