Black Knight may be worth $80-$85/share in a takeout, analyst says
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Black Knight Inc. (NYSE:BKI) may be valued at $80-$85/share in a takeout after a report yesterday that the mortgage lending software and analytics firm is exploring a potential sale, according to a Truist analyst.
BKI is worth 20x-22x C22E EBITDA, or $80-$85, on a potential takeover, Truist analyst Andrew Jeffrey wrote in a note on Tuesday. The best comparable for Black Knight is Verisk (VRSK), which currently trades at nearly 25x C22E EBITDA. The most likely buyer for BKI is a private equity firm as there no any obvious strategic partners.

"This view is based on the company's leading competitive position and the scarcity value of mid-single % organic revenue growth compounding and a ~50% EBITDA margin" Jeffrey, who has a buy rating and $85 price target on BKI, wrote in the note.
Bloomberg reported Tuesday that BKI is considering a potential sale after garnering takeover interest. Private equity firms are said to be weighing offers for Black Knight.