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
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2021 | KeyBanc | Maintains | Overweight | |
Dec 2020 | Canaccord Genuity | Maintains | Buy | |
Dec 2020 | Raymond James | Maintains | Outperform |
View More Analyst Ratings for COUP
View the Latest Analyst Ratings
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Posted-In: Barclays Raimo LenschowAnalyst Color Initiation Analyst Ratings