Coupa Software could see $80/share in a potential takeout – analysts

Sundry Photography Coupa Software (NASDAQ:COUP) could see a takeout price of $80/share in a possible acquisition, according to Raymond James, after a report Wednesday that a buyout group has held talks with the company. Coupa rose 2.7% in premarket trading Friday after soaring almost 30% on the initial report. “COUP has consistently been mentioned as a SaaS asset that would be attractive to PE buyers, and we’ve long viewed the asset as a potentially attractive takeout candidate,” Raymond James analyst Brian Peterson, who has an outperform and $75 price target on Coupa (COUP) wrote in a note on Wednesday. Bloomberg reported Wednesday that private equity firm Vista Equity has had talks with Coupa (COUP), though no deal is imminent. Coupa shares had plunged over 70% this year before the news. Based on an 8x multiple, Coupa (COUP) may see $80/share in a takeover, according to Raymond James’ Peterson. That compares to the recent deals for Avalara (AVLR) at 8x and Ping Identity for 7x, supporting a target in the 7-8x range as a “reasonable proxies.” Based on Vista Equity’s recent takeout multiples, Coupa (COUP) may see $60-$70/share in a possible takeover, according to Credit Suisse analyst Fred Lee, who has an underperform rating on COUP and a $60 price target. The average EV/LTM revenue multiple that Vista paid over the last two years was 9.7x, implying a $67.70 take out price for Coupa (COUP), according to Lee. Also see SA contributor Gary Alexander’s piece from earlier this month entitled “Coupa: Still A Steal And Potential Takeover Target.”