BigCommerce: Leading Headless E-Commerce Platform With Accelerating Growth Opportunity

Moretus Research
841 Followers

Summary

  • Initiate 'strong buy' on BigCommerce with $20 PT, citing AI-powered checkout, multi-currency, and upsell tools as catalysts for revenue acceleration.
  • Expect FY25 revenue to outpace consensus (6.5% growth), with Q4 acceleration and enterprise deals driving FY26 growth to 13.3%.
  • Valuation rerating likely as growth accelerates and FCF margins improve, closing the current 70% EV/sales discount to SaaS peers by FY26.
  • Risks include longer enterprise sales cycles and partner revenue-share variability, but risk/reward is attractive at current lows with business fundamentals improving.

Woman purchasing clothes on a mobile app

Alistair Berg

Initiation

We initiate on BigCommerce Holdings, Inc. (CMRC) with a Strong Buy rating and PT of $20. BigCommerce is a cloud-native SaaS e-commerce platform that enables merchants (both B2C and B2B) to build and scale customized online stores using

This article was written by

Moretus Research
841 Followers
Moretus Research delivers state-of-the-art, buy-side quality equity research for serious investors seeking clarity, conviction, and alpha. We focus on going beyond the obvious. We practice positive paranoia when analyzing investments — understanding sentiment, knowing where our competition is right or wrong, and how that will shape the future of any given security we’re researching. We won’t always be right, but we’re right more often than we’re wrong. More importantly, when we are right, we’re right big. At the beginning of 2023, Oskar Goyvaerts, our CIO, recommended and bought Carvana at $5 per share for our readers — pointing out that the 88% short interest was wildly overblown and that alternative data signaled a looming turnaround. That idea returned more than 60x over three years. Finding another Carvana is unlikely, but we’re confident in our ability to cut through the noise, focus on fundamentals, and uncover a data edge through carefully curated alternative data sources. We cover everything from businesses we own to companies we follow closely because we may want to own them in the future.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CMRC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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