How Coupa Software Is Spending Money To Save Money

Loading...
Loading...

While Barclays’ Raimo Lenschow sees Coupa Software Inc 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.

Posted In: Analyst ColorInitiationAnalyst RatingsBarclaysRaimo Lenschow
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...