Stifel Downgrades Avalara (AVLR) to Hold
- Stocks and oil rise on hopes of looser COVID curbs in China
- Citi's Montagu sees risk for another S&P 500 short squeeze on futures positioning
- Chinese stocks rally on hints of authorities' commitment to reopening
- Dollar weakens, yuan rises; China's COVID controls in focus
- European stocks higher on Chinese COVID reopening hopes
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Stifel analyst Brad Reback downgraded Avalara (NYSE: AVLR) from Buy to Hold with a price target of $93.50 (from $95.00).
The analyst comments "Before the open, Avalara announced an agreement to be acquired by Vista Equity Partners for $93.50/share in an all cash transaction ($8.4B EV). This agreement represents a ~27% premium to the 7/6 closing price of $73.54 per share when reports of a potential transaction first surfaced, and values Avalara at ~7.9x CY23E EV/revenue. The deal has been unanimously approved by AVLR's Board of Directors but is subject to shareholder and regulatory approvals, with an expected closing date during 2H22. Given the earlier press reports we believe this was a well shopped transaction and do NOT expect an overbid. Concurrent with the announcement, Avalara announced mixed 2Q22 results, with ~17% billings growth. We view the deal as a positive read through for Vertex and serves as another reminder that software M&A remains robust. Given the deal, we lower our TP to $93.50 and downgrade shares to Hold."
Shares of Avalara closed at $95.55 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- KeyBanc Downgrades Roku Inc. (ROKU) to Sector Weight
- Subsea 7 SA (SUBC:NO) (SUBCY) PT Raised to NOK125 at Berenberg
- Fresenius Medical Care AG & Co KGaA (FME:GR) (FMS) PT Lowered to EUR49.05 at Berenberg
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!