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Investing.com - Morgan Stanley downgraded TaskUs, Inc (NASDAQ:TASK), a $1.64 billion market cap company trading at a P/E ratio of 26x, from Overweight to Equalweight and lowered its price target to $16.50 from $21.00 ahead of a key merger vote. InvestingPro data shows the stock’s technical indicators suggest overbought conditions.
The rating change comes as TaskUs shareholders prepare to vote Wednesday, September 10 on a proposed merger agreement with a purchase price of $16.50 per share, which represents approximately 9.2 times Morgan Stanley’s calendar year 2026 earnings per share estimate of $1.79. According to InvestingPro analysis, the company has demonstrated strong performance with 19% revenue growth in the last twelve months.
Morgan Stanley noted that recent price action in TaskUs shares, currently trading around $18, already reflects the possibility that the stock could be bid higher than the proposed $16.50 takeout price. The stock has shown remarkable momentum, delivering a 50% return over the past year.
According to TaskUs’ latest 10-Q filing, if the majority of minority Class A shareholders vote against the proposed merger agreement, either TaskUs or the merger corporation may terminate the agreement.
In such a scenario, TaskUs could remain a standalone company, the buyer group could submit a revised bid by December 10, 2025, or TaskUs could consider other strategic offers.
In other recent news, TaskUs Inc. is facing opposition from investment firm Murchinson Ltd. regarding its proposed take-private deal. Murchinson has expressed its disapproval of the $16.50 per share offer from Blackstone Inc. and TaskUs co-founders, arguing that the deal undervalues the company. The firm has suggested that TaskUs should be valued at a minimum of $19.00 per share. Murchinson’s stance is based on TaskUs’s strong financial performance and growth trajectory. This development is crucial for investors as it highlights differing perspectives on the company’s valuation. The proposed transaction and Murchinson’s opposition could influence future decisions and shareholder sentiment. Investors will be watching closely to see how this situation unfolds.
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