Summit: 'Another Stellar Quarter' For Tableau

In a report published Friday, Summit Research analysts maintained a Hold rating on Tableau Software Inc DATA, while raising the price target from $75 to $90, after the company reported another set of robust 1Q15 results.

"Tableau once again reported solid results and provided outlook that was ahead of consensus estimates. Tableau has proven time and again that it is a force in the self-serve visualization market," the analysts said. The release of Tableau 9.0 has increased competition for self-service visualization companies like Qlik Technologies Inc QLIK (rated Buy).

The EPS estimates for 2015 and 2016 have been raised from $0.30 to $0.42 and from $0.70 to $0.65, respectively.

The call indicates that Tableau is investing significant efforts to "become a true enterprise player," with managing the data, security of the data and making it ready for audit and compliance.

Despite Tableau being a high growth company, the rating is maintained at hold on account of:

1. There is growing competition with Qlik Sense "gaining initial traction" in the self-service visualization market
2. The Street may be overestimating the size of the market, since a majority of Excel users never need a visualization function
3. "The low hanging fruit may have been picked"
4. Comps are likely to get tougher at these levels
5. Tableau's stock is "priced to perfection" and "any hiccups will not be tolerated by the Street," the analysts commented.