Barclays In a report of U.S. software companies, Barclays’ Raimo Lenschow raised his targets for Descartes Systems Group Inc. ( “underweight”) to US$71 from US$65, Lightspeed Commerce Inc. ( “overweight”) to US$20 from US$19 and OpenText Corp. ( “equalweight”) to US$44 from US$40. The averages are US$85.44, US$18.79 and US$50.25, respectively.
“It seems we are in the middle of a year-end rally in software. Looking at current valuation levels shows that EV/Sales multiples are up by a full turn since early November, but still below the long-term average, which could provide further support. We move to CY25 for our new base year, which lowers multiples further,” he said.