Tableau's 'Low-Hanging Fruit Already Picked,' Says Summit Readstone

Loading...
Loading...

Tableau Software Inc’s DATA growth is likely to remain sluggish, with intensifying competition and the company facing increasing challenges in upselling within the install base, Summit Readstone’s Srini Nandury said in a report. He relaunched coverage of the company with a Hold rating and a price target of $53.

Low-Hanging Fruit Already Picked

With the competitive landscape expected to worsen, Tableau is unlikely to be able to generate robust revenue growth.

“Based upon on our conversations with industry insiders, Tableau is seen as a limited application rather than a broad platform which many enterprise users come to expect,” analyst Srini Nandury wrote. He added that although the company is working to enhance its product, it would take time to roll out the features users expect.

Related Link: Amazon's Web Services Conference Takeaways From Deutsche Bank

“In the near-term, Tableau growth will continue to be sluggish as many of the low-hanging fruit have already been picked and the upsells within the install base will be harder to come by,” Nandury commented.

Pricing Change Needed

Tableau’s products are perceived as expensive and the company needs to make its pricing more competitive in the near term. The analyst explained the dilemma being faced by Tableau as - “reduce the pricing with no increase in revenue above the prior levels or maintain the price and fight for every single customer the hard way.”

Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!

Loading...
Loading...
Posted In: Analyst ColorInitiationAnalyst RatingsSrini NandurySummit Readstone
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...