UPDATE: Morgan Stanley Initiates Coverage on Tableau Software with Equal-Weight Rating on Forecast Upside Risk

In a report published Tuesday, Morgan Stanley analyst Keith Weiss initiated coverage on

with an Equal-Weight rating. In the report, Morgan Stanley noted, “Tableau offers software that enables users to reduce the complexity and inflexibility associated with traditional business intelligence tools, allowing a broader population of users to derive insights from data. By expanding the overall market, DATA should sustain 30%+ growth for the next several years, in our view. We see a long-term path to 20%+ margins, but near-term we expect DATA to trade margin expansion for growth as it invests in the business. DATA's 16x EV/CY14 sales multiple reflects high investor expectations for solid execution over the next several years. However, if DATA continues to push outside traditional BI users and sustains sales productivity as capacity ramps, the Bull Case revenue CAGR of 50% thru CY14 is achievable and could drive shares towards our $78 Bull Case.” Tableau Software closed on Monday at $58.11.