Coupa Software Inc's (NASDAQ:COUP) price target got a huge bump higher by Oppenheimer Equity Research after the company posted sterling fiscal second-quarter results and announced an acquisition which should bolster its bottom line.
Analysts Koji Ikeda, Brian Schwartz and Tyler Page increased their price target for Coupa to US$90 per share, nearly 17% higher from the prior target price of US$77.
The upgrade followed Coupa's announcement of fiscal second-quarter results that total revenues for the quarter hit US$61.7mln, up 38% compared to the same period last year. Earnings per diluted share came in at US$0.05, a sharp turnaround from a loss of US$0.10 in the same period last year.
For the third quarter, the company issued guidance revenue would be between US$62-US$63mln and that total revenues for the year would range from US$243-US$245mln. The company also acquired DCR Workforce, an application provider for workforce and services procurement management.
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"Bottom line: The F2Q results are a data point that the Coupa story is strong, and the business is entering 2H:FY2019 with healthy momentum that should lead to more beats and raises in upcoming quarterly reported results," Oppenheimer said in a research note to clients, adding "the acquisition of DCR Workforce should increase Coupa's value proposition and differentiation in the spend management category."
"While the acquisition of DCR Workforce is a long-term positive for the business, in our view, near term, it raises execution and integration risks."
Shares of Coupa jumped to a 52-week high of US$84.50 at the start of trading on Wednesday and was trading up 12% to US$80.60.
Coupa is a provider of solutions that connects hundreds of organizations with more than four million suppliers globally. The company is based in San Mateo, California.
In separate news, OurPet's (OTCMKTS:OPCO) said on Wednesday its net revenue for the second quarter of 2018 went up almost 6% to US$6.54mln. Earnings per diluted share stood at US$0.01, unchanged from the same period a year ago.
Shares of OurPet's traded flat at US$0.73 on Wednesday, up 0.97% for the session.