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D.A. Davidson Bails On Tableau Software, Downgrades And Cuts Price Target 42%

D.A. Davidson Bails On Tableau Software, Downgrades And Cuts Price Target 42% - DATA, Amazon.com, Inc. NASDAQ:AMZN

D.A. Davidson is moving to the sidelines on big data play Tableau Software Inc DATA 5.36%. The firm has downgraded the stock from Buy to Neutral and lowered its price target by 42 percent.

According to analyst Jack Andrews, Tableau’s business is simply too complex at the moment to allow for any reasonable share price projections.

“While we continue to believe Tableau remains an innovator with market leading products attacking a large addressable opportunity, there are simply too many moving pieces around this story to merit a Buy rating at this juncture,” Andrews said.

Despite a revenue beat in Q2, Tableau’s EPS fell well short of DA Davdson’s expectations.

The constantly-shifting guidance revisions make it difficult for analysts to rely in Tableau’s forward projections.

Andrews also notes that larger competitors Amazon.com, Inc. AMZN 0.72% and Microsoft Corporation MSFT 0.54% seem to be gaining momentum with their new offerings.

“We believe another emerging trend IT buyers are grappling with is the need to purchase standalone analytics software given that many of these capabilities are increasingly embedded in various applications,” he added.

D.A. Davidson has cut its price target for Tabeau from $101 to $59. So far in 2016, the stock is down 44.6 percent.

At time of writing, Tableau was down 5.96 percent on the day, trading at $53.

Disclosure: The author holds no position in the stocks mentioned.

DateFirmActionFromTo
Aug 2016DA DavidsonDowngradesBuyNeutral
Aug 2016Stifel NicolausMaintainsBuy
Aug 2016KeyBancMaintainsOverweight

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