Smartsheet Inc Class A
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$21.00 | Rkxjx | Xgdspqjk |
Smartsheet Earnings: Healthy Enterprise Adoption Partly Offset by SMB Expansion Headwinds
We maintain our $53 fair value estimate for narrow-moat Smartsheet following the release of robust third-quarter results, with top-line growth broadly tracking our expectations but profitability surprising to the upside. Smartsheet continues to report impressive enterprise adoption and a sequential reacceleration in bookings despite macroeconomic headwinds. Following the result, we have lifted our fiscal 2024 profitability assumptions, however, our longer-term forecasts remain intact. After rallying over the past month, Smartsheet shares now trade in line with our unchanged valuation.