Coupa Software Price Target Raised at RBC

Coupa Software received a price-target increase Thursday from RBC Capital Markets ahead of the fiscal Q1 results expected Monday afternoon from the provider of a cloud-based, spend-management platform. The new price target is $40 per share, up from $35. In comparison, the stock closed Wednesday at $34.22. RBC kept its investment rating on the shares at outperform.

For the quarter ended April 30, the mean estimate of analysts polled by Capital IQ is an adjusted loss of $0.14 per share. The analysts’ mean estimate for revenue is $38.3 million. The company wasn’t public in the prior-year period; it just went public in October. In a note to clients, RBC said it is “positively biased on Coupa into the quarter.” The firm added: “We think high-profile [customer] wins like Pearson and Caterpillar, increased private-investor interest in the space, competitive end of lives from IBM and SAP, and sustained competitive win rates especially in the mid-market should contribute to a solid quarter and guide.”

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