Initiating Coverage of Squarespace With No-Moat, Stable Moat Trend Ratings and $17 FVE

We initiate coverage of Squarespace with a $17 fair value estimate and no-moat, stable moat trend, and very high uncertainty ratings. Squarespace offers subscription-based, drag-and-drop website-building software that caters to various use cases, including e-commerce, blogging, and portfolio websites as well as standalone software for social media content design, hospitality management, and scheduling. The offering is primarily targeted at entrepreneurs and micro businesses looking for intuitive, do-it-yourself software to build a professional-looking website. At current prices, Squarespace shares screen as overvalued, trading at a 22% premium to our fair value estimate.