Jefferies sees more upside in PowerSchool after report of PE interest

Jefferies notes a media report this morning indicates Bain Capital’s interest in PowerSchool at a $6B enterprise value, which would translate to a “mid-20s share price.” The stock has rallied over 20% today, but the firm contends “there is more upside” as it believes a “best-in-class” vertical software company such as PowerSchool should attract a 7-11 times revenue multiple. The firm has a Buy rating and $30 price target on PowerSchool shares.