JMP Securities Upgrades Squarespace (SQSP) to Market Outperform, 'Google Domains contributing to revenue as domains are renewed'

JMP Securities analyst Andrew Boone upgraded Squarespace (NYSE: SQSP) from Market Perform to Market Outperform with a price target of $40.00.

The analyst comments "Upgrading Squarespace to Market Outperform and establishing a $40 price target. With Google Domains contributing to revenue as domains are renewed, we believe our above-consensus estimates call for organic high-single-digit bookings and revenue growth in 2024, ex-Google Domains' contribution. We believe this is conservative as Squarespace's international localization efforts are resonating and international legacy price increases continue to be a tailwind. With Squarespace at a four-turn 2025 FCF multiple discount to Wix, we believe it is set to outperform in 2025 with the chance for upside to our estimates and for multiples to rerate. While we are now overweight both Wix and Squarespace, the industry is broadly more rational as upside to profitability for both businesses can lead to outperformance for both, in our view."

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 $32.53 yesterday.

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