TaskUs weakness on short report is buying opportunity, Baird says
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TaskUS (NASDAQ:TASK) pullback on Spruce Point short report is a buying opportunity, according to Baird.

"The items raised like client concentration, attrition, free cash flow generation (weak due to fast growth) are all well known," Baird analyst David Koning wrote in a note. "A new item raised is the allegation that Bryce inflated his undergrad degrees...the allegations seem to be splitting hairs...the fast growth, Blackstone backing, and strong financial acumen (CFO knows the numbers extremely well) signifies the company is operated very well."

TaskUs (TASK) remains outperform rated at Baird with a $74 price target.
Shares of TaskUS dropped about 15% on the new short call from Spruce Point, where the firm sees potential for 25% to 50% downside risk for the shares. The short report alleges that the company has "exaggerated and inflated business claims" and sees potential "financial strain" in its relationship with Facebook (NASDAQ:FB), which represents 28% of its sales.
TaskUs said in a statement to Seeking Alpha that it's aware of the Spruce Point report and believes it's "designed for the sole purpose of negatively impacting TaskUsâ share price for Spruce Pointâs own benefit."
TaskUs is reviewing the report and will "take appropriate steps in response to the assertions," according to the statement. "We remain confident in our strategy, our value proposition and our ability to create value for our clients, teammates and shareholders.
TASK short interest is 11.7%.

TaskUs went public in June, soaring 35% in its first day of trading.