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According to Citi, TEAM risks disappointing against current med-term cloud growth and OPM expectations.
“Street Cloud expectations appear optimistic (particularly as a guidance starting point) when contextualized against current 30% organic cloud growth trends, near-term seat-expansion unlikely to ameliorate as iffy macro persists, and as server migration influence wanes,” wrote the bank.
Analysts believe that OPM expansion momentum could also be curbed, as the removal of Cloud adoption ‘blockers’ and scaling of enterprise-class GTM warrants incremental investments, where “TEAM could conceivably leverage a ‘license to invest’ on the back of recent OPM upside and an investment-cycle.”
Overall, Citi says that these metrics landing below Street views are likely to put downward pressure on TEAM shares in the near-term.
