Everbridge Inc. (NASDAQ: EVBG) has now seen its post-IPO quiet period come to an end. The critical communications and enterprise safety applications provider’s initial public offering was 7,500,000 shares of common stock at $12.00 per share.
With shares trading at $15.76 coming into Tuesday, the reality is that this IPO has performed well for the people who were able to subscribe. Still, the post-IPO high was $18.73.
Some 6.25 million shares were offered by Everbridge, and another 1.25 million shares were sold by existing stockholders.
Credit Suisse and Merrill Lynch were listed as Everbridge’s joint book-running managers for the offering. Other managers in the offering were Stifel, Pacific Crest Securities, a division of KeyBanc Capital Markets, Raymond James, Canaccord Genuity and William Blair. Not all of the reports were immediately available, but here is what we have seen so far:
- Merrill Lynch started coverage as Buy with a $22 price objective.
- Canaccord Genuity started coverage with a Buy rating and a $22 price target.
- Credit Suisse started coverage with an Outperform rating and a $21 price target.
- Pacific Crest started coverage with an Overweight rating and a $19 price target.
- Raymond James started coverage with an Outperform rating and a $20 price target.
- Stifel started coverage with a Buy rating and a $20 price target.
The Merrill Lynch synopsis and investment rationale said:
Initiating coverage on emergency mass notification system (EMNS) cloud leader Everbridge, Inc. with a Buy rating and $22 PO. Everbridge is likely to generate solid 25%+ subscription/revenue growth over the long term from growing adoption of EMNS. Our $22 price objective is based on EV/sales 5.9x our C17e revenue, in line with SaaS group average.
We believe that Everbridge is likely to generate solid 25%+ subscription/revenue growth over the long term from growing adoption of the EMNS category in a time of growing domestic and international threats, as well as share gains stemming from a number of competitive advantages such as leading installed base of nearly 3,000 customers, scalability and ease of use. Solid sales productivity (IRSM) of 1.6x (vs industry avg 0.5x) is a leading indicator for healthy margin expansion over time.
Credit Suisse said in its synopsis:
Everbridge has pioneered a comprehensive enterprise communication software platform with best-of-breed mass notification/non-mass notification applications that enable enterprises, the public sector, and other governmental entities to save lives and protect business processes during public safety and critical business events. The strength of EVBG’s model stems from its technology leadership, expansive portfolio of applications, attractive customer acquisition economics, and high revenue retention rates, which we believe should enable the company to generate > +25% revenue and billings growth with increased margin leverage/profitability over the next three years, at least.
Everbridge shares liked the coverage issued so far. They were up 2.2% at $16.11 midday on Tuesday.