Market Overview

Barclays Downgrades Tangoe; Likes CyberArk, Tableau, Qlik & Others


In a report published Friday, Barclays analyst Raimo Lenschow previewed the U.S. Software space, noting that valuations across the sector is near the high end of their historical range, which may cause some investors to become "increasingly wary" of continued share outperformance.

Lenschow commented that investors concern may not necessarily be justified as near-term fundamental data and ongoing fund inflows to the software sector (from semiconductors) support valuations "for the time being."

Here are some key highlights from Lenschow research note:

  • The analyst "likes" SAP SE (ADR)M (NYSE: SAP) heading into its earnings print as its underlying license performance "seems to be holding up" stronger than the market is expecting. In addition, early product momentum surrounding S/4 HANA is "healthy."
  • The analyst is "constructive" on VMware, Inc. (NYSE: VMW) as growth expectations are "reasonable" and the company could expand its margins at a faster rate than some investors expect. However, investor sentiment tilts towards the bearish side given "questions" on its long-term growth prospects.
  • The analyst also "likes" Cyberark Software Ltd (NASDAQ: CYBR) following the "significant" selloff since its secondary offering announcement in June. Lenschow also suggested that the company's "achievable" numbers in the coming quarter makes for an "interesting volatility trade."
  • The analyst still sees "strong structural tailwinds" behind Hortonworks Inc (NASDAQ: HDP) from the "rapidly increasing" adoption of Hadoop.
  • The analyst is "somewhat cautious" on CA, Inc. (NASDAQ: CA) as its bookings performance continues to be "challenged" due to a lack of organic improvement in the near term.
  • Finally, the analyst downgraded Tangoe Inc (NASDAQ: TNGO) to Underweight from Equal-Weight (with a price target lowered to $13 from a previous $14) as the Rivermine acquisition will "do little" to accelerate growth.

Latest Ratings for CYBR

May 2019Initiates Coverage OnBuy
May 2019MaintainsOverweight
May 2019MaintainsBuy

View More Analyst Ratings for CYBR
View the Latest Analyst Ratings

Posted-In: Barclays Raimo Lenschow softwareAnalyst Color Analyst Ratings


Related Articles (CA + CYBR)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Market Update: Google & Hertz Among Mid-Day Movers, Germany Votes In Favor Of Greece Bailout And More

CyberArk Is Closest Peer To Rapid7, Says HACK ETF Manager