Why FBR Is 'Feeling Comfortable' With Qlik's Growth Story Into '16

• Shares of Qlik Technologies Inc QLIK have declined almost 25 percent in the last three months, from a high of $41.92 on August 14.
• Daniel H. Ives of FBR & Co. has upgraded the rating on the company from Market Perform to Outperform, while maintaining a price target of $38.
• Ives mentioned that checks with customers and partners suggest that Qlik Technologies is on track for a robust year end and strong momentum heading into 2016.

Analyst Daniel Ives explained that despite the adverse impact of the “modest revenue shortfall in 3Q due to a handful of slipped APAC deals” on the stock, the company’s pipeline of Qlik Sense seems to be growing and Ives expects the release of QlickView 12.0 to “prove to be another catalyst for the name in the field.”

Given that all type and sizes or enterprises are increasingly adopting analytics software, the company is well positioned to further penetrate the market across all geographies.

In fact the FBR report mentioned that “this $30 billion market opportunity over the next three years is less than 12 percent penetrated today.”

“A healthy pipeline around Qlik Sense, strong secular tailwinds, and a ramping profit profile should enable it (the company) to get back on track in 4Q/2016,” the report added.

Ives sees the stock’s risk/reward profile as compelling at the current levels.