- BofA, William Blair, Baird, Wells Fargo, RBC Capital, Morgan Stanley, and Goldman Sachs initiated coverage of business process outsourcing services provider TaskUs Inc TASK.
- BofA analyst Jason Kupferberg gave a Buy rating and a $41 price target. The price target signified a 26.6% upside to the Friday closing price of $32.29. Kupferberg was bullish on TaskUs' mix of digital and omnichannel offerings, its unique exposure to content security and artificial intelligence, its ability to rapidly respond to evolving client demands, and its culture of innovation. Kupferberg viewed the current valuation as attractive given that he expected "solid quarterly execution by this talented management team."
- William Blair analyst Maggie Nolan assigned an Outperform rating and no price target. TaskUs is a next-generation digital customer experience service provider specializing in high-growth services, Nolan's research note cited. The company's go-to-market strategy and early-mover status drive new client additions and underpin long-term growth. Nolan believed TaskUs has "multiple compelling" growth opportunities.
- Baird analyst David Koning also gave an Outperform rating. Koning's research note stated that the company has an opportunity for margin expansion given its continued mix of digital services. Koning would not be shocked to see a ~20X EV/EBITDA multiple on 2023E EBITDA over 2022.
- Wells Fargo analyst Timothy Willi provided an Overweight rating and a $35 price target. The price target signified an 8.1% upside. The competitive positioning and attractive growth profile of TaskUs were generally priced into the valuation metrics at current prices, limiting the near-term upside, Willi's research note stated.
- RBC Capital analyst Daniel Perlin gave an Outperform rating and a $43 price target. The price target implied a 32.8% upside. Perlin was optimistic about the company's exposure to a large and rapidly growing addressable market along with its "100% focus on digitally native clients". TaskUs had a "cohesive reinforcing growth strategy" capable of sustaining over 25% in annual revenue growth and industry-leading gross margins, Perlin added.
- Morgan Stanley analyst James Faucette provided an Equal Weight rating and a $34 price target. The price target signified a 5% upside. Faucette was "encouraged" by its growth prospects but saw it reflected in its "premium valuation relative to that of peers."
- Goldman Sachs analyst Matthew O'Neill assigned a Buy rating and a $61 price target. The price target implied an 88.3% upside. TaskUs was a fast-growing business process outsourcing company that continued to expand wallet share with high growing customers, O'Neill's research note stated. Given its historically high net retention rate, O'Neill saw the potential for it to rise above the consensus growth rates of its clients. TaskUs is poised to benefit from the shift towards a digital economy as content, services, and business processes modernize, O'Neill added.
- Price action: TASK shares traded higher by 2.13% at $33.08 on the last check Tuesday.
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