HashiCorp price target raised to $32 from $28 at BofA

BofA raised the firm’s price target on HashiCorp (HCP) to $32 from $28 and keeps a Neutral rating on the shares after The Wall Street Journal reported that IBM (IBM) is finalizing a potential acquisition of the company and said a deal could happen in the coming days. The current share price equates to a 16% premium from March 14, prior to any acquisition or takeout speculation, and if a deal were to happen, a strategic acquirer like IBM “seems like a logical exit for HashiCorp,” says the analyst, who sees merits to such a potential tie up with IBM. Applying the average exit multiple for software companies by strategic acquirers in 2024 so far would imply a total enterprise value purchase price of $6.2B, accounting for the $1.3B net cash balance, which would equate to a share price of $30 per share, the analyst noted.