Bending Spoons is trading at $43.55, down -11.08% today after BofA Securities downgraded the stock to Underperform, citing insufficient debt capacity for its ambitious acquisition strategy and concerns about M&A execution. The company's Q2 earnings report, released today, also contributed to the decline, as strong revenue and adjusted EPS were overshadowed by below-consensus full-year revenue guidance and modest organic growth.
- BofA estimates approximately $7 billion of additional debt capacity by year-end 2027, less than market expectations for M&A.
- Q2 revenue rose 126% to $704 million and adjusted EPS beat estimates.
- However, Q3 and full-year revenue guidance fell slightly below consensus, and organic revenue growth was only 3%.