Analyst Note| Julie Bhusal Sharma |
Bloomberg broke news today of a possible acquisition of Coupa by Vista Equity Partners, according to an anonymous source. As a result, the stock is up a whopping 30% to nearly $60. We are waiting for further news on the acquisition, including a possible purchase price as well as any confirmations from either Coupa Software of Vista Equity Partners, before making any changes to our fair value estimate. As a result, we are maintaining our $108 fair value estimate for the narrow moat, positive moat trend name, which leaves shares in attractive 4-star territory even after the big rally.