Coupa Software price target raised to $81 from $65 at Wells Fargo

Wells Fargo analyst Michael Turrin raised the firm’s price target on Coupa Software to $81 from $65 and keeps an Equal Weight rating on the shares after the company announced has entered into a definitive agreement to be acquired by Thoma Bravo for $81 per share, expected to close in the first half of 2023. The analyst views this deal as sensible given a series of co-specific challenges that have fallen on Coupa since COVID, a product set he sees as complimentary to any broader backoffice aspirations, and operational opportunities to offset slowing growth with margin expansion. With the software sector still trading at about 5-times on average, Turrin expects to see an uptick in M&A activity across SMID-cap software.