Squarespace To See Whopping 20% Growth Over Medium Term On Pricing Tailwinds: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Mizuho analyst Siti Panigrahi upgraded Squarespace (NYSE:SQSP) to Buy from Neutral, with a price target increase to $50 from $34, citing potential for significant growth driven by Google Domains acquisition, pricing tailwinds, and Squarespace Payments. The company is expected to see 20%+ growth with 30% uFCF margins over the medium term. The Google Domains acquisition has already contributed $13 million in revenue, with expectations of substantial revenue contributions from domains and pricing increases in the coming years.
May 10, 2024 | 4:35 pm
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Squarespace's upgrade by Mizuho to Buy from Neutral with a new price target of $50, driven by growth levers like the Google Domains acquisition, pricing tailwinds, and Squarespace Payments, indicates a bullish outlook for the company's financial performance and stock price.
The upgrade by Mizuho reflects a strong confidence in Squarespace's growth trajectory, especially considering the expected revenue contributions from the Google Domains acquisition and pricing strategies. The analyst's bullish stance and the raised price target suggest a positive short-term impact on SQSP's stock price, as market perceptions align with these growth expectations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100