Smartsheet may be worth $60/sh in a deal, likely to see more interest – analyst

Smartsheet (NYSE:SMAR) could see $60 a share in a takeover, which would be a “reasonable” price, according to a Wells Fargo analyst, after an earlier report that a private equity consortium is in talks to buy the maker of workplace collaboration software.

Smartsheet (SMAR) rose 4% after a Reuters report that an investor consortium including private equity firm Vista Equity and Blackstone (BX) are in talks to acquire the company.

Should a deal come to fruition in the coming weeks, as the report indicates, other parties may show interest during a likely “go-shop” period, Wells Fargo analyst Michael Berg, who has a $60 price target and overweight rating on SMAR, wrote in a note on Thursday.

“While the article explicitly states SMAR is explicitly in talks to be acquired by a mix of PE buyers, we expect outside bidders to surface in a likely go-shop period (both financial and strategic),” Berg wrote.

Adobe (ADBE) could be another potential bidder for Smartsheet (SMAR) after Adobe’s purchase of Workfront, according to Berg.

“ADBE acquired a comp, Workfront, and has seen robust results since the deal close, making us believe SMAR could similarly fit in nicely to larger platforms,” Berg added.

The Reuters report comes after the news service reported in July that Smartsheet (SMAR) was is in discussions with investment bankers after seeing acquisition interest from buyout firms.

Smartsheet (SMAR) is scheduled to report Q2 results after the market close.