Envestnet Inc

ENV: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$73.00	Jxzgdsq	Qzyxtqdkt

Envestnet: Sale of Yodlee Reportedly Being Explored, Which May Improve Envestnet’s Strategic Focus

Rajiv Bhatia

Dec 14, 2023

Bloomberg has reported that narrow-moat-rated Envestnet is exploring selling its data and analytics segment Yodlee. The Bloomberg's Dec. 13 article does not mention how much Envestnet is looking to fetch for Yodlee but, given revenue declines in recent years and a tepid outlook, we'd expect it to go for less than the company paid for it. We will maintain our $48 fair value estimate on Envestnet's shares and view Envestnet's shares as roughly fairly valued. We attribute the positive market reaction to the fact that a sale would remove a revenue-lagging segment and may increase Envestnet's strategic focus rather than expectations of a lofty sales price.

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