Benzinga | Aug 6, 2021 03:55PM EDT

Analysts Raise Avalara's Price Target Following Q2 Earnings Beat

* Raymond James analyst Brian Peterson raised the price target on Avalara Inc (NYSE:AVLR) to $220 from $155, implying a 29.7% upside, and reiterated an Outperform rating, praising the Q2 beat.

* Avalara's Q2 revenue of $169.1 million beat the analyst consensus of $153.1 million. The revenue grew by a record 45% year-on-year, driven by subscription and returns revenue strength.

* The EPS of $0.02 beat the analyst consensus loss of $(0.09).

* With an expanding product portfolio and an expanding SI/partner ecosystem, Peterson sees little to stop the durability of Avalara's growth profile.

* Mizuho analyst Siti Panigrahi raised the price target to $220 from $180 and reiterated a Buy.

* Panigrahi acknowledged the Q2 earnings beat and continues to view Avalara's long-term growth opportunity favorably.

* Piper Sandler raised the price target from $210 to $215, signifying a 26.7% upside, and maintained Overweight.

* Canaccord analyst David Hynes raised the price target to $205 from $165, denoting a 20.9% upside, and affirmed a Buy.

* The stock is probably in the upper third of the valuation range in which he would like to buy the shares but would wait for a pullback to get super aggressive.

* Stifel analyst Brad Reback raised the price target to $200 from $160, signaling a 17.9% upside, and kept a Buy. The rating follows the company's Q2 beat.

* Reback said that customers are increasingly turning toward Avalara to meet their ever-expanding compliance needs. He expects Avalara to sustain mid-20% annual revenue growth in the coming years.

* Price action: AVLR shares traded higher by 0.20% at $169.97 on the last check Friday.