Tableau Software Inc DATA on Monday was upgraded from Equal-Weight to Overweight by Morgan Stanley with a $84 price target.
The report issued by analysts Keith Weiss and Melissa Gorham noted that "with a large market opportunity, expanding distribution capacity and strong execution, we see plenty of runway for continued top-line and FCF outperformance from Tableau. As Tableau distances itself from its peers and profitability improves, we see DATA moving towards our new $84 price target."
Weiss indicated that Tableau had invested aggressively in sales and distribution to capitalize on opportunities in the Business Intelligence market. These investments, "coupled with a larger maintenance base should drive significant leverage in the model. We see a high probability of our bull case for Tableau, which looks for >50 percent top-line growth through CY16 and >100 percent FCF growth with better leverage."
Other firms, such as Credit Suisse, have also been bullish on Tableau.
Tableau Software Inc traded at $72.03 in the premarket, up 2.58 percent.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
