Bending Spoons slides as BofA becomes first bear since IPO
BSP•Street view remains mostly bullish
Now, 7 of 11 brokerages rate the stock strong buy or buy, 3 rate hold and BofA is the lone sell, according to LSEG data. The median price target is $41.50.
Price target raised, but still below the market
The brokerage raised its price target by $2 to $39, implying 27% downside to the stock's last close.
AOL and Vimeo owner BSP, which debuted on July 1 after its IPO was priced at $29, is slated to report Q2 results before the bell on Thursday.
BofA turns bearish on Bending Spoons after IPO runup
Shares of Italian tech firm Bending Spoons were down 9% at $48.64 on Wednesday after BofA Global Research downgraded the stock to underperform from neutral, saying too much future M&A is priced in.
BofA became the first brokerage to issue a "sell-equivalent" rating since the company went public last month.
The brokerage said the current stock price implies $18 billion of go-forward M&A and it thinks BSP won't have enough additional debt capacity, only $7 billion by year-end 2027, to complete such deal volume by CY28.
BofA said the stock runup after BSP's Airtable deal is unjustified, adding that execution risk is a factor, given management's "less prolific track record with sales-driven SaaS businesses."
