UPDATE: Piper Sandler Upgrades Squarespace (SQSP) to Overweight, Sees 37% Upside

October 15, 2021 3:37 AM EDT
Get Alerts SQSP Hot Sheet
Price: $35.92 --0%

Rating Summary:
    13 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 2 | New: 11
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(Updated - October 15, 2021 9:01 AM EDT)

Piper Sandler analyst Brent Bracelin upgraded Squarespace (NYSE: SQSP) from Neutral to Overweight with a price target of $50.00.

The analyst commented, "We are upgrading SQSP to Overweight from Neutral based on an attractive risk-reward given shares are now 43% off the 52W highs. The CY22E EV/S multiple has compressed to 6.2x from 10.7x in late June on eroding confidence in the durability of growth. We argue the sharp three-month sell-off is overdone for a design-centric web builder platform that has just 4% penetration and a large and untapped opportunity to modernize ~30M basic websites powered by open-source CMS. Robust traffic growth trends at Tock during Q3 imply transactional revenue (8% of sales) could be stronger than expected going into 2022. We are raising CY22 revenue estimates by $9M on increasing confidence that international, transactional commerce, and new products can help sustain high-teens to low 20% growth rates and spark a return to 20%+ unlevered FCF margins in either 2022 or 2023. We see 37% upside to our $50 PT."

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 $36.59 yesterday.


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