UPDATE: KeyBanc Starts Squarespace (SQSP) at Overweight

June 14, 2021 2:42 AM EDT
Get Alerts SQSP Hot Sheet
Price: $51.87 -1.87%

Rating Summary:
    11 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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(Updated - June 14, 2021 4:18 AM EDT)

KeyBanc analyst Josh Beck initiates coverage on Squarespace (NYSE: SQSP) with a Overweight rating and a price target of $70.00.

The analyst comments "We see the attractive TAM assessed by ~800M small business-self employed, ~$150B of spending, and ~$4T+ of e-Com GMV as a compelling market opportunity against which SQSP is generally <1% penetrated, outweighing competitive concerns against other modern web development platforms, and think SQSP is particularly well suited to address the entrepreneur segment. We view the mid-80s cash retention ratio as favorable and estimate a ~2x return on S&M between 2018 and 2020 based on our estimates for retention and incremental revenue. The combination of mid-to-high 20s revenue growth and ~20% EBITDA margin represents a compelling combination of growth and profitability."

For an analyst ratings summary and ratings history on Squarespace click here. For more ratings news on Squarespace click here.

Shares of Squarespace closed at $59.90 yesterday.

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