SMID Cap Software Comps_ Vertical Software and Internet Infrastructure Universe. Thu Jan 02 2025

Key Points Industry or Company Involved - SMID Cap Software Companies: The document focuses on a comparative valuation of SMID cap software companies, specifically within the vertical software and internet infrastructure universe. Core Views and Arguments - Stock Performance: The S&P index was down (-3%) week over week, with many covered stocks performing in line with or slightly underperforming the index. ALKT (-7%) was the greatest underperformer, while CCCS and SSNC were down only (-1%) [4]. - Recent Events: SS&C announced new SaaS releases for Alternatives customers across its Geneva, Eclipse, and OEMS solutions [4]. - Recent Calls & Publications: The document highlights Guidewire, Tyler, and Clearwater as top picks heading into 2025E [4]. - Coverage Universe: The document provides a table of covered companies, including their ticker, company name, JPM analyst, rating, price as of 12/31/2024, market cap, EV/Sales, EV/EBITDA, EV/FCF, FCF Yield, and FCF Yield [6]. - Verticals: The document discusses various verticals, including Real Estate and Construction, Internet Infrastructure, Financial Services, Insurance Software, and Other Vertical Software Names [10-18]. - Valuation: The document provides valuation analysis for each vertical, comparing the covered companies to their peers and the broader market [10-18]. - Comparables: The document identifies comparable companies for each vertical and compares their valuation metrics to the covered companies [10-18]. Other Important Content - Analyst Certification and Important Disclosures: The document includes analyst certification and important disclosures, including potential conflicts of interest and the firm's relationship with covered companies [3, 21-25]. - Coverage Universe: The document provides a list of companies covered by J.P. Morgan's equity research team [30]. - Equity Valuation and Risks: The document outlines the valuation methodology and risks associated with covered companies or price targets [33]. - Other Disclosures: The document includes various other disclosures, such as legal entity responsible for the production and distribution of research, country-/region-specific disclosures, and general information about the research material [43-50].