Smartsheet
stock offers an attractive buying opportunity for investors, Jefferies says.
On Thursday, analyst Brent Thill reiterated his Buy rating and $55 price target for shares of
Smartsheet
(ticker: SMAR), a leader in workforce collaboration.
Smartsheet is the “best-value play for its dominant position w/enterprises, strong cross-sell motion, significant operating leverage & attractive valuation,” he wrote.
The company’s software enables employees to automate business processes and workflows with no programming knowledge. For instance, instead of manually tracking changes in a spreadsheet using one-by-one emails, workers can send out web-enabled forms to colleagues or vendors that automatically update data into a “smart” spreadsheet, saving time and reducing error rates.
Smartsheet shares traded up 1.3% to $41.56 on Friday. The stock is down about 15% from its 52-week high.
Over the past 12 months, Smartsheet shares are up 10%, compared with the
Nasdaq Composite’s
8% rise.
The analyst noted Smartsheet now trades at just 4.5 times enterprise value to 2024 revenue, compared with its peer
monday.com’s
(MNDY) 6.5 times.
“On a growth-adjusted basis, SMAR’s valuation stands at a significant ~15% discount to broader peers,” Thill wrote. “We believe SMAR warrants a premium valuation.”
The company is scheduled to report its first-quarter results on Wednesday, June 7.
Write to Tae Kim at [email protected]
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