Benzinga | Dec 13, 2021 01:47PM EST

Why Are Everbridge Shares Trading Lower Premarket?

Analysts downgraded ratings and cut their price target on Everbridge Inc (NASDAQ:EVBG) following the CEO departure and a disappointing outlook.

* JPMorgan analyst Sterling Auty downgraded to Neutral from Overweight with a price target of $127, down from $200 (10.1% upside).

* Stifel analyst J. Parker Lane downgraded to Hold from Buy with a price target of $100, down from $185 (13.3% downside).

* The company announced the resignation of CEO David Meredith. It offered an initial outlook of 20%-23% revenue growth in 2022, which came in below Street expectations, Lane tells.

* The analyst says the timing and uncertainty around the circumstances of Meredith's departure combined with the company's guidance "introduces a high degree of uncertainty into the story in the near term."

* With growth decelerating from 36% in 2021 to 23% in 2022, "there are more questions than answers at this point," contends Lane.

* BofA analyst Brad Sills downgraded to Underperform from Neutral with a price target of $100, down from $175.

* The analyst cites the company's announcement of the transition of its CEO and its preliminary FY22 revenue growth outlook of 20%-23% - below the consensus of 26%.

* The CFO and CRO of Everbridge are capable executives, but the CEO transition "creates an overhang" and puts into question the overall future direction of the business, Sills tells.

* Barclays analyst Ryan MacWilliams downgraded to Equal Weight from Overweight with a price target of $90, down from $185 (22% downside).

* The analyst is surprised by the CEO's resignation, which raises questions on bookings and the company's pipeline.

* Further, MacWilliams says that Everbridge's new fiscal 2022 revenue guidance was below Street estimates.

* Baird analyst William Power downgraded to Neutral from Outperform with a price target of $95, down from $175 (17.7% downside).

* Price Action: EVBG shares traded lower by 30.7% at $80 in the premarket session on the last check Friday.