Raymond James reiterates Market Perform on Intapp stock after mixed Q1

Raymond James maintained a Market Perform rating on Intapp, Inc (NASDAQ:INTA) after reviewing the company's first-quarter financial results. The software firm disclosed mixed dynamics regarding bookings timing, however, it demonstrated robust profitability with record gross margins at 75.82%. According to InvestingPro analysis, Intapp's stock appears undervalued in relation to its Fair Value.

Shares of Intapp surged 125% from 2026 lows in recent months, before experiencing a setback following the market close. The stock has generated an impressive 89% return over the past six months, backed by positive momentum in its AI product Celeste, which has seen a pipeline increase of 2.5 times after becoming generally available mid-quarter.

Cloud migration activity is accelerating, though it poses some short-term revenue challenges. Intapp has raised its fiscal 2027 growth outlook beyond the first-quarter beat. Analyst Brian Peterson from Raymond James noted that it is challenging to predict further stock gains after the shares' year-to-date outperformance, contingent on Celeste close rates rising from present levels.

Intapp reported fiscal first-quarter 2027 earnings, with non-GAAP earnings per share at $0.44, surpassing Wall Street's estimate of $0.40. This profitability performance was overshadowed by a significant revenue shortfall, with actual revenue of $125.5 million falling short of the expected $159.18 million. This revenue gap was primarily attributed to Intapp's ongoing transition from on-premises software to cloud subscriptions.

Despite the earnings beat, the focus on the revenue miss has been a point of concern for analysts and investors. The company's stock saw a notable drop in response to the revenue figures. Intapp's stock has rebounded 125% from 2026 lows in recent months, and currently appears undervalued relative to its Fair Value. Raymond James highlighted this strong momentum, offering 11 additional exclusive tips to subscribers.

Analysts and investors are closely monitoring how Intapp manages its strategic transition in the upcoming quarters.