E2open Parent Holdings’ Acquisition by WiseTech Global: Hold Rating Reflects Valuation and Growth Prospects

In a report released yesterday, Chris Quintero from Morgan Stanley maintained a Hold rating on E2open Parent Holdings (ETWO – Research Report), with a price target of $3.30.

Chris Quintero has given his Hold rating due to a combination of factors surrounding E2open Parent Holdings’ recent acquisition agreement with WiseTech Global. The acquisition, which values E2open shares at a significant premium, reflects the ongoing consolidation in the supply chain software industry. Despite the premium offered, the implied valuation metrics such as EV/Sales and EV/EBITDA are at a discount compared to recent software acquisitions, which is considered reasonable given E2open’s modest growth prospects.
Furthermore, the acquisition deal is expected to close in the latter half of 2025, pending customary regulatory approvals and conditions. This timeline, along with the unanimous board approval and majority shareholder consent, provides a level of certainty to the transaction. However, the Hold rating suggests that while the acquisition price aligns with the current market dynamics, there may be limited upside potential beyond the agreed acquisition price of $3.30 per share.