Marketo (MKTO) Worth $37.03-$51.67/Sh in a Deal; SAP (SAP) Most Likely Suitor - Credit Suisse

May 10, 2016 4:01 PM EDT
Get Alerts MKTO Hot Sheet
Price: $35.25 --0%

Rating Summary:
    4 Buy, 12 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 15 | Down: 21 | New: 16
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Credit Suisse analyst Phillip Winslow weighed in on Marketo, Inc (NASDAQ: MKTO) amid earlier reports it could be for sale.

The firm sees SAP (NYSE: SAP) as the most likely suitor with Microsoft (NASDAQ: MSFT) as a potential bidder as well.

On a takeout price the firm came to a price of $44.35, which is a calculated enterprise value to last twelve-months subscription revenue multiple of 9.9. Adding and subtracting the standard error of 1.71 to this calculated multiple would drive warranted share prices of $37.03 and $51.67, respectively.

The firm reiterated an Outperform rating and price target of $30 on MKTO.

For an analyst ratings summary and ratings history on Marketo, Inc click here. For more ratings news on Marketo, Inc click here.

Shares of Marketo, Inc closed at $21.47 yesterday.

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