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Investing.com - Baird has upgraded TaskUs, Inc (NASDAQ:TASK) from Neutral to Outperform and set a price target of $18.00 following a significant stock pullback. According to InvestingPro data, the company maintains a GOOD financial health score, with current trading metrics showing a P/E ratio of 19.7x and an EV/EBITDA of 6.83x. Analysis suggests the stock is currently undervalued.
The upgrade comes after TaskUs shares declined approximately 20% since October 8, when a founder-led take-private transaction failed to secure necessary votes. During the same period, the S&P index fell only 1.5%.
Baird cited TaskUs’s growth rate as a key factor in the upgrade decision, noting it is "one of the fastest growing of the CX firms" with 22-24% year-over-year growth. The current valuation represents approximately 5 times the expected 2026 EBITDA.
The research firm also pointed to positive industry conditions, observing that TaskUs and competitors IBEX and CNXC all reported accelerated growth in their most recent quarterly reports.
Baird suggested the possibility that the buyer group that previously offered $16.50 per share might return with an improved offer of $17-19 per share "in the next several quarters if the stock remains around current levels."
In other recent news, TaskUs, Inc. has experienced several significant developments. The company announced the termination of its proposed merger agreement with Breeze Merger Corporation after failing to secure the necessary approval from its stockholders. This decision was made following a special stockholder meeting where the proposal did not pass. Additionally, TaskUs stockholders rejected a buyout deal proposed by an affiliate of Blackstone and the company’s co-founders. This rejection means TaskUs will remain publicly traded on Nasdaq. The company had previously reminded stockholders to vote on the $16.50 per share acquisition offer by Blackstone, but the special meeting was adjourned multiple times due to insufficient votes. Despite efforts to gather more support, the buyout vote did not achieve the required majority approval from unaffiliated shareholders. These recent developments indicate TaskUs will continue its operations as an independent public company.
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