Gold prices steady ahead of Fed decision; weekly weakness noted
On Monday, Morgan Stanley (NYSE:MS) reiterated its Equalweight rating on E2open Parent Holdings (NYSE:ETWO) while maintaining the price target at $2.10. The firm increased its ’Bull Case’ scenario for the stock to $4.05, following news that WiseTech Global is participating in a strategic review of E2open, which could lead to a potential takeover. Currently trading at $2.66, InvestingPro analysis suggests the stock is undervalued, with a robust gross profit margin of 65.3%.
Chris Quintero, a Morgan Stanley analyst, acknowledged E2open’s value as a strategic asset, citing its "durable core enterprise customer base and high gross retention rate." The adjustment in the Bull Case reflects the possibility of a deal coming to fruition, potentially at the reported purchase price. According to InvestingPro data, analysts expect the company to turn profitable this year, with projected earnings of $0.22 per share in FY2026. Get deeper insights with InvestingPro’s comprehensive research report, available for over 1,400 US stocks.
The strategic review by WiseTech Global has brought the spotlight onto E2open, as the process could potentially unlock value for the company’s shareholders. Morgan Stanley’s raised Bull Case scenario suggests a significant upside from the current price target, which remains unchanged at $2.10.
Quintero’s commentary did not confirm any knowledge of a pending transaction but indicated that the raised Bull Case is a response to the potential outcomes of the strategic review. The analyst’s perspective is that the review could culminate in a deal that realizes a higher value for E2open.
E2open’s stock performance in the coming days may reflect investor reactions to these developments as the market processes the implications of WiseTech Global’s involvement and the potential for a takeover. The strategic review could be a pivotal moment for E2open, with Morgan Stanley’s analysis providing a glimpse into what the future could hold for the company’s valuation.
In other recent news, E2open Parent Holdings reported a mixed performance for the fourth quarter of fiscal year 2025. The company exceeded earnings per share (EPS) expectations with a reported EPS of $0.06, surpassing the forecast of $0.05. However, total revenue fell slightly short of projections, coming in at $152.7 million compared to the anticipated $153.01 million, marking a 3.6% year-over-year decline. Despite this revenue miss, the company’s stock saw a notable increase in aftermarket trading. Analysts from Loop Capital and Goldman Sachs recently revised their financial outlooks for E2open, with both firms lowering their price targets and maintaining cautious ratings. Loop Capital reduced its target from $3.00 to $2.00, keeping a Hold rating, while Goldman Sachs adjusted its target from $2.30 to $2.10, maintaining a Sell rating. These adjustments reflect ongoing concerns about E2open’s growth prospects amid economic challenges. The company has also been recognized for its efforts in stabilizing customer churn and enhancing its product offerings, including the launch of new AI tools. Looking ahead, E2open anticipates subscription revenue for fiscal year 2026 to range between $525 million and $535 million, indicating a cautious optimism for a return to positive growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.