Shares of Squarespace (NYSE:SQSP) declined 8% on Friday after KeyBanc analyst Josh Beck downgraded the rating on the stock to Hold from Buy.
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Squarespace provides an all-in-one platform for businesses and individuals to create websites.
The new lower rating can be attributed to the analyst’s view about opacity in Squarespace’s growth initiatives, such as branded payments. Nevertheless, Beck remains optimistic about the company’s management team and long-term strategy in the commerce and back-office software space.
Also, Beck believes that the company’s near-term results can benefit from pricing optimization and momentum in Tock, the restaurant reservation platform that Squarespace acquired in 2021.
It’s worth noting that as per TipRanks, Beck is ranked 192 out of 8,294 Wall Street analysts. He has a success rate of 58%, with an average return per transaction of 15.3%.
Is Squarespace a Buy or Sell?
SQSP stock has a Hold consensus rating based on three Buys and nine Holds assigned in the past three months. The average stock price target of $23.67 implies 12.1% upside potential. Shares have declined more than 33% over the past year.
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