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Squarespace (NYSE:SQSP) was downgraded to Neutral from Outperform by Mizuho Securities following its second quarter financial results on Friday, and its ongoing process to go private.
The New York City-based Squarespace provides website building and hosting services.
“The following week after our upgrade of SQSP back in May, Squarespace announced that the private equity firm Permira will be taking it private at $44 (all cash),” said Mizuho analysts Siti Panigrahi and others, in a note. “Squarespace’s Founder & CEO (who is rolling over a majority of his equity), General Atlantic, and Accel (together commanding ~90% of voting shares) voted in favor of the transaction, which is expected to close by Q4 2024.”
Mizuho also lowered its price target to $44 from $50 as it does not expect another bidder to come forward at this point.
Squarespace’s second quarter 2024 financial results showed earnings per share of $0.03 versus the consensus estimate of $0.09. Its revenue of $296.8M surpassed the estimate of $293M.
Squarespace has a Sell rating from Seeking Alpha analysts and a Hold rating from Wall Street analysts. However, Seeking Alpha’s Quant system, which routinely beats the market, rates it a Buy.
