Guggenheim analysts downgraded Smartsheet (NYSE:SMAR) from Buy to Neutral following the expiration of the “go-shop” period related to its proposed acquisition by Blackstone and Vista Equity Partners. The analysts cited the recent proxy filing from Smartsheet, which revealed that multiple financial and strategic parties had shown interest in acquiring the company, highlighting the asset’s appeal.
The agreed acquisition price, which values Smartsheet at roughly 6.7 times its next twelve months recurring revenue, was viewed as reasonable by Guggenheim, though the analysts acknowledged the potential for the company to achieve an even higher valuation over time under the guidance of the new owners. Along with this rating change, Guggenheim also withdrew its previous price target of $62 for Smartsheet.