Analysts Remain Bullish on TaskUs after Recent Acquisition

TaskUs, Inc. (TASK) revealed that it acquired heloo, a provider of digital solutions to European technology companies. heloo has a strong presence in e-commerce and gaming.

With this acquisition, TaskUs will be able to strengthen its European language capabilities, as heloo supports 20 languages across Eastern Europe. Also, the company will be able to broaden its client base and scale its global operations by expanding further into Eastern Europe.

As per the agreed terms, heloo’s co-founders, Domagoj Makar and Tomislav Plesa, will continue to manage the business.

CEO and Co-Founder of TaskUs, Bryce Maddock, said, “heloo adds depth to our European language offering, in particular German language capabilities. Additionally, heloo diversifies our client mix – allowing TaskUs to further expand in key high-growth industries like e-commerce and gaming.”

“We are thrilled to join forces with TaskUs and benefit from its additional scale, expanded service offerings, and global footprint as we continue to deliver superior customer experiences for our clients,” said Domagoj Makar, Co-founder and CEO of heloo.

Wall Street’s Take

Following the news release, BTIG analyst Matthew VanVliet maintained a Buy rating on TaskUs with a price target of $60 (64.4% upside potential from current levels).

VanVliet said, “This represents the first acquisition for TASK as a public company, and is [in] line with ongoing investments around global services, geographic expansion, and strategic focus on key market verticals that are high growth and serving the digital economy.”

Consensus among analysts is a Strong Buy based on six Buys and one Hold. The average TaskUs price target stands at $51.43 and implies upside potential of 40.9% from current levels.

Hedge Fund Trading Activity

TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in TaskUs is currently Very Positive, as hedge funds have increased their TaskUs holdings by 2.6 million shares in the past quarter.

The Takeaway

The deal is expected to boost TaskUs’ performance as it comes with several benefits. Also, the bullishness of analysts and hedge funds are other favorable factors that, combined with the Street’s expectations of ~40% upside, should definitely put the stock on investors’ watch lists.

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