champpixs
- Baird Equity Research upgraded Squarespace (NYSE:SQSP) on the likelihood of the IT company's fundamental merits being better appreciated in estimates/valuation.
- The stock was trading ~3% higher Monday pre-market at $32.36.
- "We think there has recently been a meaningful shift in investor sentiment regarding the web building category - and in our view, SQSP has not participated to a sufficient degree despite healthy execution, revenue growth, and margin expansion," Baird said in a research note.
- The research organization upgraded the recommendation on the stock to Outperform, and raised the price target to $39 from $30.
- According to Baird, current consensus estimates are likely conservative, Google Domains acquisition seems compelling, the Investor Day could be a positive catalyst for the shares that have struggled given a lack of clarity regarding long-term targets, and the potential drivers/events ahead can help shift sentiment more substantially.
- The company had posted a Q4 revenue beat.
- The rating aligns with the Seeking Alpha authors and the sell-side analysts ratings of Buy. Wall Street analysts give the stock a price target of $37.51 on average.
- Meanwhile, SA's Quant Rating system grades the stock a Hold, considering factors such as Revisions, Valuation, etc.