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- Intapp (NASDAQ:INTA) shares fell more than 4% in premarket trading on Monday as Oppenheimer downgraded the software company, citing worries over the impact of artificial intelligence and increased competition.
- Although there has been a lot of buzz around AI in the tech landscape, there are concerns that it could lead to slower hiring for sales and account management roles and slower spending in purpose-built relationship management solutions, analyst Brian Schwartz said. Schwartz lowerd his rating on Intapp to Perform from Outperform and removed his $42 price target.
- There’s also concern that companies like Salesforce (CRM), Oracle (ORCL) and others have strengthened their offerings and are now competing with like-for-like products, Schwartz said.
- As such, Schwartz is concerned that growth for Intap is likely to slow down and become “less predictable” and given its “inefficient” business model, valuation is likely to come down.
- Analysts are largely bullish on Intapp (INTA). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a STRONG BUY. Conversely, Seeking Alpha’s quant system, which consistently beats the market, rates INTA a STRONG BUY.