CCC Intelligent Solutions Holdings (CCCS) is set to see about a 2% contribution to growth from its Emerging solutions in 2025, also potentially becoming a catalyst for the company's shares, Morgan Stanley said in a Wednesday note.
"Checks suggest material momentum behind the adoption, utilization, and significant return on investment observed from the deployment of CCC's Emerging solutions," Morgan Stanley said. According to the investment firm, CCC's long-term model projects its Emerging solutions' contribution to overall growth to increase to 3% to 4% annually in the long run.
Morgan Stanley also noted that the company has "multiple" growth drivers ahead, such as its "strong network effect" and upselling/cross-selling of its solutions. CCC is also set to benefit from its cost discipline and customer retention, paving the way for further margin expansion, the investment firm added.
Morgan Stanley upgraded CCC Intelligent Solutions Holdings to overweight from equal-weight, with a higher price target of $15 from $14.
Price: 11.78, Change: +0.28, Percent Change: +2.39
Comments