UPDATE: UBS Starts Coupa Software (COUP) at Neutral

UBS analyst Taylor McGinnis initiates coverage on Coupa Software (NASDAQ: COUP) with a Neutral rating and a price target of $230.00.

The analyst comments "We're initiating with a Neutral rating while we wait for more convincing evidence that demand for early-stage opportunities is materializing, competition with Ariba is stabilizing and plenty of runway exists in the enterprise segment for Procurement and Invoicing. COUP shares have underperformed the software market as back-office initiatives recover more slowly and we believe that organic revs need to return to sustainable 30%-plus growth for COUP to outperform. We spoke with >10 checks to gain insight into the key growth drivers and think it's likely that subscription revs grows at +30% near-term (we are prudently modeling mid-20s growth). However, at a CY22E revenue multiple of 20x (roughly in-line with peers), we see the potential but would like to have greater comfort in the durability of 30%-plus growth ahead."

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

Shares of Coupa Software closed at $219.18 yesterday.

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