When businesses start looking at “strategic alternatives,” you can tell there’s at least a possibility that they will have a new owner soon. Alteryx (NYSE:AYX), meanwhile, revealed that it was looking at a potential sale in the making. That was enough to send the data analytics company surging up over 13% in the closing minutes of Wednesday’s trading session.
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Currently, Alteryx is working with Qatalyst Partners, an investment bank that’s helping Alteryx consider its options, even the possibility of an outright sale or new takeover bid. However, reports also noted that Alteryx hasn’t seen an offer that it likes yet, which is hindering any progress that might come.
In fact, Truist analyst Joel Fishbein offered up a projection that suggests where offers will have to start to catch Alteryx’s interest. Fishbein noted that, while he personally has a $40 price target on Alteryx, the company itself could be worth $44 per share using a 3.5x valuation multiple based on 2024 revenue estimates. That’s a substantial premium from the $34.58 it traded at in the last half-hour. Alteryx has also been demonstrating its value; it worked with McLaren Racing to offer a way for employees to develop data analytics skills through Alteryx’s SparkED education system.
Analysts also find Alteryx a worthwhile buy. With nine Buy ratings and six Holds, Alteryx stock is considered a Moderate Buy by analysts. Further, with an average price target of $48.07, Alteryx stock also offers investors a 38.93% upside potential.
