EngageSmart Acquisition By Vista Equity Draws Multiple Downgrades: Analysts Project Steady Growth Amid Fair Valuation Concerns
Portfolio Pulse from Lekha Gupta
EngageSmart Inc (NYSE:ESMT) has been downgraded by several analysts following its acquisition by Vista Equity Partners for $4.0 billion or $23 per share. The purchase price represents a premium of about 23% to the unaffected closing price of ESMT's shares on October 4, 2023. Analysts from Raymond James, KeyBanc Capital Markets, and Needham have downgraded the company's rating due to fair valuation concerns, despite projecting steady growth for the company.
October 24, 2023 | 5:58 pm
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EngageSmart Inc's acquisition by Vista Equity Partners has led to multiple downgrades by analysts due to fair valuation concerns. However, steady growth is projected for the company.
The acquisition of EngageSmart Inc by Vista Equity Partners has led to a downgrade in the company's rating by several analysts. This is due to concerns about the company's valuation, despite projections of steady growth. This could potentially lead to a short-term negative impact on the company's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100