DA Davidson analyst raises Domo (DOMO) target price to $15, maintains Neutral rating

DA Davidson analyst Lucky Schreiner has raised Domo's (DOMO) price target from $9 to $15, maintaining a Neutral rating. The analyst attributes the upgrade to robust Q2 results, driven by partner-led pipeline growth. However, further substantial improvements in growth outlook are necessary before taking a more optimistic stance on the stock.

DA Davidson analyst Lucky Schreiner has revised Domo's (DOMO) price target from $9 to $15, maintaining a Neutral rating. The upgrade is attributed to robust Q2 results, driven by partner-led pipeline growth. However, Schreiner emphasizes that further substantial improvements in growth outlook are necessary before taking a more optimistic stance on the stock [1].

Domo's Q2 2026 results highlighted a 19% increase in subscription Remaining Performance Obligations (RPO) to $409.8 million, with a first positive non-GAAP EPS of $0.02. The consumption model shift boosted 108% Net Revenue Retention (NRR) for contract customers and secured long-term partnerships, including a 3-year CDW joint solution [2]. The company's ecosystem collaborations with Snowflake and AI tools like Agent Catalyst have strengthened its position in the $30B AI analytics market, projected to grow at 25% CAGR [2].

Despite these positive developments, Schreiner's Hold rating reflects a cautious approach. The analyst acknowledges the company's progress but remains mindful of the challenges that lie ahead. The raised revenue guidance for FY26 indicates slight growth, but not enough to warrant a more aggressive rating. The valuation of Domo’s shares at approximately 2x CY26E revenue aligns with its growth peers, supporting the Hold recommendation [1].

According to TipRanks, Schreiner is an analyst with an average return of -14.4% and a 13.33% success rate. Schreiner covers the Technology sector, focusing on stocks such as C3ai, Progress Software, and Box [1].

In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $16.50 price target [1].

References:
[1] https://www.tipranks.com/news/ratings/cautious-optimism-hold-rating-for-domo-amid-positive-trends-and-growth-challenges-ratings
[2] https://www.ainvest.com/news/domo-strategic-transformation-high-conviction-buy-ai-driven-data-analytics-2508/