BlackLine downgraded to Sell at Citi amid Back Office Software shakeup

As previously reported, Citi analyst Steven Enders downgraded BlackLine (BL) to Sell from Neutral with a price target of $63, up from $58, as he adjusted estimates and targets as part of his broader 2023 Back Office Software outlook. He is taking a more tactical view in the near-term, seeing opportunities in initial outlooks for 2023 and preferring names with potential upside, Enders tells investors. He cites an elevated M&A premium as well as estimate risk for his downgrade of BlackLine and is also initiating a pair trade of BlackLine against Workiva (WK), on which he has a Buy rating.