KeyBanc Capital Markets said it still sees potholes ahead for Tableau Software Inc NYSEDATA, as it grapples with inconsistent execution and increasing competition.
Low Visibility Into Revenues
Analyst Brent Bracelin said two major transitions, namely new leadership and subscription pricing, limit his visibility into revenue growth for
KeyBanc noted that the company delivered an earnings beat despite
Lowering Estimates, Price Target
The firm lowered its estimates for the company, following up on a cut last week, marking the fourth cut of this year. The reduction was blamed on a greater-than-anticipated mix shift to subscription pricing and a weaker spending environment.
KeyBanc models revenues of $825 million, down from its previous estimate of $987 million, equating to 3 percent total growth. Nevertheless, the firm sees recurring revenues increasing by 41 percent year-over-year, offset by a 39 percent drop in perpetual-driven revenue.
The firm has an Outperform rating on the shares of Tableau Software, while it lowered its
That said, the firm believes the potential for subscription and maintenance revenues could limit the downside in the shares below $40.
At last check, shares of Tableau Software were down 12.91 percent at $43.12.
|Nov 2016||William Blair||Downgrades||Outperform||Market Perform|
|Nov 2016||Drexel Hamilton||Downgrades||Buy||Hold|
|Oct 2016||OTR Global||Downgrades||Positive||Mixed|
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