ESMT - EngageSmart falls after Goldman Sachs lowers rating on limited catalyst in near term
2023-07-13 08:53:09 ET
- EngageSmart ( ESMT ) fell ~2% Thursday pre-market after Goldman Sachs lowered the rating on the payments solutions company on a limited catalyst path in the near term.
- The agency downgraded the company to Neutral from Buy, but maintained the price target at $21. The stock is currently trading at $19.58.
- The agency said it has a more balanced outlook on the stock.
- The ratings action contradicts with the average sell-side analysts ratings. The Wallstreet analysts give the stock a Buy rating, with an average price target of $24.60.
- Seeking Alpha authors and the Quant Rating system also give the stock a Buy rating.
- Goldman Sachs sees a mixed outlook for consumer spending and payments companies in the near term.
- The ratings agency said the deceleration in spending volumes have not rebounded in Q2, while incremental headwinds from student loan payments is expected in H2.
For further details see:
EngageSmart falls after Goldman Sachs lowers rating on limited catalyst in near term