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Credit Suisse Speculates Marketo's Takeout Value

Shares of Marketo Inc MKTO 24.69% spiked sharply higher Tuesday afternoon, as chatter moved through trader circles that the company was exploring a sale. Bloomberg then came out and said the company had hired advisors to explore a potential sale or strategic alternatives.

Credit Suisse released a note after Tuesday's closing bell speculating on what a possible Marketo takeout offer could be. Using acquisitions in the past 12 months, such as Opower, Taleo, WebEx and Yodlee, among others, Credit Suisse plotted the takeout multiples vs. some of these past acquisitions and calculated a trend model that best fit the data points.

Applying the $198.9 million sub. revenue and growth of 38.1 percent, Credit Suisse calculated enterprise value of $44.35 per share. Adding and subtracting standard error, they arrived at a range of $37.03 To $51.67 per share, respectively.

Shares of Marketo closed up 24.69 percent on the day at $26.77.

DateFirmActionFromTo
May 2016Bank of AmericaUpgradesUnderperformNeutral
Apr 2016Lake StreetDowngradesBuyHold
Apr 2016Credit SuisseMaintainsOutperform

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