Sumo Logic takeout could be double share price, says William Blair

Sumo Logic stock rose more than 20% yesterday on an article published by The Information discussing interest from private equity firms, William Blair analyst Kamil Mielczarek tells investors in a research note. The analyst says non-strategic acquisitions in the space have ranged from 3.9 times to more than 10 times forward consensus sales. This implies potential for an acquisition price more than double that of yesterday’s closing price, William Blair points out. The firm keeps an Outperform rating on Sumo Logic.