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A potential sale of Blackbaud (NASDAQ:BLKB) should likely start with an $80 or likely $90 a share, as recent takeovers suggest a possibility of $100, according to a Raymond James analyst.
The analysis comes after Blackbaud (BLKB) rose 4.3% on Thursday after a Bloomberg report that investment firm Clearlake Capital Group, which has an 18% stake in the company, is renewing an attempt to take the software provider private.
“If an offer from Clearlake were to come, we think it would need to be much higher than the $71 non-binding offer received in March 2023,” Raymond James analyst Brian Peterson wrote in a note on Friday. “We think that price should at least start with an 8 and likely a 9, with recent takeouts of other vertical software players suggesting a possibility of ~$100 a share.”
Peterson added that he sees limited downside for investors at current levels, particularly with two larger potential buyers” of shares, meaning Clearlake and Blackbaud (BLKB) itself, which has been repurchasing its shares.
Peterson has a $90 price target and outperform rating on Blackbaud (BLKB). Blackbaud shares rose 2.1% on Friday.
Blackbaud (BLKB) last March rejected Clearlake’s $71 a share offer, saying that it fundamentally undervalued the company.
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