Four financial services firms on Tuesday initiated coverage of BlackLine Inc. three weeks after the accounting software developer went public.
Starting their coverage of the Woodland Hills company was Robert W. Baird & Co. in Milwaukee, JPMorgan Chase & Co. in New York, Goldman Sachs Group Inc. in New York and Pacific Crest Securities in Cleveland.
Baird rated BlackLine as “outperform” due to above-average long-term growth prospects.
“BlackLine is the clear leader in a large emerging market, whose products feature a compelling value proposition,” senior research analyst Steven Ashley wrote in a research note released Tuesday.
JPMorgan and Goldman Sachs issued “neutral” positions while Pacific Crest set an “overweight” rating on the stock.
Goldman Sachs and JPMorgan were the underwriters on the initial public offering, while Baird and Pacific Crest were co-managers.
BlackLine was founded in 2001 by Therese Tucker, its chief executive. The company develops software that reduces the need for human accountants by automating the processes of closing out financial books and reconciling accounts. Its existing customers include Dow Chemical Co., Coca-Cola Co. and Air Medical Group Holdings.
Shares on Tuesday closed down 75 cents, or more than 2 percent, to $27 on the Nasdaq. The stock debuted at $17 on Oct. 28.