JMP Securities Downgrades Squarespace (SQSP) to Market Perform
JMP Securities analyst Andrew Boone downgraded Squarespace (NYSE: SQSP) from Market Outperform to Market Perform.
The analyst comments "We are downgrading our rating of Squarespace to Market Perform from Market Outperform after the company announced this morning that it expects to be acquired by private equity funds managed by Permira for $44 per share in cash, which implies a $6.6B all-cash transaction, and is near our prior price target of $45. The transaction values Squarespace at 18.0x our 2025E free cash flow or 4.7x 2025E revenue. While the transaction still needs to be approved by votes outside of Squarespace’s key shareholders (CEO Anthony Casalena, General Atlantic, and Accel), we expect the deal to go through as CEO Anthony Casalena plans to roll over a “substantial majority” of his existing equity while major shareholders General Atlantic and Accel also plan to “re-invest” as part of the transaction."
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 $38.19 yesterday.