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How Coupa Software Is Spending Money To Save Money


While Barclays’ Raimo Lenschow sees Coupa Software Inc (NASDAQ: COUP) as “the next large horizontal application software vendor,” valuation has kept the analyst on the sidelines.

Lenschow initiated coverage of the company with an Equal-Weight rating and price target of $28.

The Wall Street Journal reported following the company’s IPO that shares had more than doubled following their market debut, taking Coupa Software’s market capitalization to over $1.5 billion.

Spend Management

According to the Barclays report, “Built on "Ruby-on-Rails" technology, a nextgen programming language for web apps, Coupa's user-friendly platform has already enjoyed strong user adoption, exemplified by its strong revenue growth of 65 percent y/y for FY2016.”

Lenschow believes growth rates will continue to be robust, given that the TAM was estimated at around $16 billion, with only one main competitor.

The analyst also pointed out that the Software-as-a-Service solution being offered by Coupa Software “tackles one of a customer's main pain points, controlling a company's indirect spending. Coupa's solution is modern, flexible, and easy to use, which means it is enjoying high end user acceptance - a key factor for better spend management.”

The IPO quiet period for the company expired today.

Latest Ratings for COUP

Jan 2021KeyBancMaintainsOverweight
Dec 2020Canaccord GenuityMaintainsBuy
Dec 2020Raymond JamesMaintainsOutperform

View More Analyst Ratings for COUP
View the Latest Analyst Ratings


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Posted-In: Barclays Raimo LenschowAnalyst Color Initiation Analyst Ratings

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IRIXRoth CapitalMaintains9.0
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VORBarclaysInitiates Coverage On56.0
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