Smartsheet (SMAR) is an overvalued SaaS bet on the proliferation of the usage of SaaS tools driven by the growth in enterprise adoption of cloud platforms. Investors' oversubscription to tech stocks makes this a frothy near-term bet, though the possibilities of an acquisition add more meat to the bullish thesis.
As a result, I will be initiating a HOLD rating with a price target of $27.
Demand (Rating: Bullish)
The demand for Smartsheet's productivity solutions remains strong. This is driven by strong performance in the United States and global large enterprises. Smartsheet's size relative to