PowerSchool go-private transaction at ‘right price makes sense,’ says Baird

Baird noted that PowerSchool’s stock is trading above $20 in response to The Wall Street Journal reporting that Bain Capital is in talks to acquire the company at an enterprise value around $6B, implying about $25 per share. Noting that vertical software has become frequent target of M&A in 2024 and that PowerSchool is a “high-quality asset,” while adding that recent scrutiny around the stock is “undue,” the firm says it believes “a transaction at the right price makes sense” and based on the initial headlines, “this strikes us as a fair offer.” Baird has an Outperform rating and $26 price target on PowerSchool shares.