Evercore ISI Cuts Price Target to $9 for CCC Intelligent Solutions After FY25 Gains
Evercore ISI maintained an Outperform rating on CCC Intelligent Solutions Holdings but cut its price target to $9 from $12, citing software sector multiple compression despite accelerated AI adoption. CCC posted FY25 revenue of $1.057B (up 12%), adjusted EBITDA of $436M (up 10%), and generated $254.5M in free cash flow.
1. Rating Update and Valuation Revision
Evercore ISI maintained an Outperform rating on CCC Intelligent Solutions Holdings but reduced its price target to $9 from $12, pointing to broader software sector multiple compression despite the company’s strong fiscal 2025 finish and growing AI revenue contribution.
2. Fiscal 2025 Financial Performance
CCC reported full-year revenue of $1.057 billion, marking a 12% increase year-over-year and surpassing the $1 billion threshold for the first time, while adjusted EBITDA rose 10% to $436 million and GAAP net income reached $1.7 million.
3. Fourth-Quarter Results and Cash Generation
In the fourth quarter, revenue climbed 13% to $277.9 million and adjusted EBITDA totaled $118.7 million; the company generated $254.5 million in free cash flow and $315.5 million in operating cash flow for the year.
4. Balance Sheet and Strategic Investments
At year-end, CCC held $111.2 million in cash against $1.291 billion in debt and plans to continue investing in AI-driven software development and data analytics solutions for the automotive and insurance markets.