PowerSchool selloff brings attractive buying opportunity, says Jefferies

Jefferies believes the recent short report by Spruce Point on PowerSchool is overblown and views the stock selloff as an attractive buying opportunity. Fears around the Elementary and Secondary School Emergency Relief Fund cliff and private equity overhang are both well understood by the Street, the analyst tells investors in a research note. The firm says child data privacy comments are its biggest concern, but it questions the magnitude of any impact. It finds the stock attractively valued and keeps a Buy rating on the shares with a $30 price target.