FTIV - Betsy Cohen's SPAC snags Outperform rating on Perella Weinberg prospects

Wolfe Research analyst Steven Chubak starts coverage of FinTech Acquisition IV (FTIV) at Outperform as its agreement to merge with Perella Weinberg Partners ("PWP") "is the most attractive investment opportunity in the M&A space."Sets $16 price target; compares with Jan. 29 closing price of $11.51.Considers PWP management projections too conservative as the M&A backdrop remains very favorable and public backlog trends remain strong.Sees potential for non-comp leverage to surprise on the upside.Points to Moelis and Houlihan Lokey as other M&A firms that adopted conservative margin targets before they went public. "Both firms surprised positively in relation to their margin targets, which translated into 2700-2800 bps of O/P (outperformance) vs. peers in the 6M following IPO," Chubak writes. He sees a similar setup for PWP.As a side note, see FTIV's ownership by investor type (chart below). Public and other makes up the largest portion at 41% followed by individuals/insiders at 25%,

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Betsy Cohen's SPAC snags Outperform rating on Perella Weinberg prospects