11:45 AM EDT, 03/25/2024 (MT Newswires) -- BigCommerce Holdings ( BIGC ) revenue growth outlook is "uninspiring" amid tough competition and macro, BofA Securities said in a note Monday.

Revenue growth is crucial in this sector, and the company is expected to see a revenue growth rate of 5.7% in 2024, which is lower than the industry average, analyst Koji Ikeda said, adding that BigCommerce ( BIGC ) continues to face tough competition from established players like Salesforce ( CRM ) and Oracle (ORCL).

BigCommerce's ( BIGC ) Rule-of-40 profile, which combines revenue growth and free cash flow margin, also remains weaker compared to peers, Ikeda added.

The analyst said there are few catalysts to drive shares higher for BigCommerce ( BIGC ) over the medium term, which could lead to relative underperformance compared to other companies in the eCommerce software industry.

Soft demand might lead to less potential for revenue growth compared to other software categories like infrastructure. BigCommerce's ( BIGC ) revenue guidance for 2024 is "underwhelming" and significant expansion in free cash flow margins is unlikely due to the company's recent focus on profitability, the analyst said.

The firm downgraded the software company to underperform from neutral and adjusted its price objective to $7.50 from $11.

Shares of BigCommerce ( BIGC ) fell nearly 4% in recent trading activity.

Price: 7.00, Change: -0.28, Percent Change: -3.85