Subscription revenue for the quarter is expected to be at least $421.8 million (37.8 percent growth from last year), the analyst added. There is also little reason to doubt management's subscription growth guide of +3 percent and +5 percent quarter over quarter for the third and fourth quarter, respectively.
Despite expectations for a positive quarter, the analyst cites the stock's current premium valuation as a reason not to be a buyer at current levels. Specifically, the stock is trading at 8.4x 2018 EV/sales which are above the group average of 5.0x but a more appropriate multiple would be 7.5x which implies a $94 price target.
Finally, the analyst hinted his multiple could move higher over time if the company shows signs of accelerated momentum in the large enterprise core Financials deployment.
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