Coupa Software program may see $80/share in a possible takeout – analysts (NASDAQ:COUP)

Replace 10:45am: Provides RBC analyst remark.

Coupa Software program (NASDAQ:COUP) may see a takeout value of $80/share in a doable acquisition, in keeping with Raymond James, after a report Wednesday {that a} buyout group has held talks with the corporate. Coupa rose 2.7% in premarket buying and selling Friday after hovering nearly 30% on the preliminary report.

“COUP has persistently been talked about as a SaaS asset that may be enticing to PE consumers, and we’ve lengthy seen the asset as a doubtlessly enticing takeout candidate,” Raymond James analyst Brian Peterson, who has an outperform and $75 value goal on Coupa (COUP) wrote in a word on Wednesday.

Bloomberg reported Wednesday that non-public fairness agency Vista Fairness has had talks with Coupa (COUP), although no deal is imminent. Coupa shares had plunged over 70% this 12 months earlier than the information.

Primarily based on an 8x a number of, Coupa (COUP) might even see $80/share in a takeover, in keeping with Raymond James’ Peterson. That compares to the latest offers for Avalara (AVLR) at 8x and Ping Identification for 7x, supporting a goal within the 7-8x vary as a “affordable proxies.”

Primarily based on Vista Fairness’s latest takeout multiples, Coupa (COUP) might even see $60-$70/share in a doable takeover, in keeping with Credit score Suisse analyst Fred Lee, who has an underperform ranking on COUP and a $60 value goal.

The common EV/LTM income a number of that Vista paid during the last two years was 9.7x, implying a $67.70 take out value for Coupa (COUP), in keeping with Lee.

RBC analyst Rishi Jaluria, who known as out Coupa (COUP) as a doable takeout candidate for a PE purchaser final month, mentioned the common software program a number of paid by PE has been 9.5x NTM income, which suggests a value of $88/share. Jaluria, who has an underperform and $55 PT on COUP, warned that this value “can be a stretch given Coupa’s monetary profile.”

Additionally see SA contributor Gary Alexander’s piece from earlier this month entitled “Coupa: Nonetheless A Steal And Potential Takeover Goal.”