Qualtrics Could Bag A Higher Takeover Premium, Analyst Says Post Offer From Silver Lake & Canada Pension Plan

  • Piper Sandler analyst Brent Bracelin maintains Qualtrics International Inc XM with an Overweight, raising the price target from $16 to $18.15.
  • On March 6, Qualtrics disclosed receiving a bid from Silver Lake and Canada Pension Plan to acquire all outstanding shares of Qualtrics for $18.15 per share in cash
  • The bid represents an NTM EV/S multiple of 7.0x, slightly below the 2022 median software take-out multiple of 7.5x but slightly above the median NTM EV/S multiple of 6.7x across related customer experience and marketing tech sub-sectors. 
  • Under a deal, Qualtrics and SAP SE SAP agreed to negotiate exclusively with Silver Lake until March 15. In January, SAP shared plans to explore a sale of its remaining stake in Qualtrics.
  • The re-rating reflects the slim possibility that a slightly higher premium could emerge from exclusive talks. 
  • Evercore ISI Group analyst Kirk Materne downgrades Qualtrics from Outperform to In-Line and lowers the price target from $20 to $19.
  • Price Action: XM shares closed higher by 0.76% at $17.26 on Monday.
  • Photo Via Wikimedia Commons
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