Baird Cut Targets On A Handful Of SAAS/Software Names

Robert Baird issued a Software & SaaS Industry update, highlighting several companies while adjusting their price targets to reflect current market conditions and recent analysis.

Analysts Steven Ashley and Jason Velkavrh highlighted Tableau Software Inc. (NYSE: DATA), ServiceNow Inc. (NYSE: NOW), Workday Inc. (NYSE: WDAY), Qlik Technologies Inc. (NASDAQ: QLIK), Workiva Inc (NYSE: WK) and Red Hat Inc. (NYSE: RHT) as investors have adjusted their focus from top-line revenue growth to near-term profitability prospects.

Tableau

Baird reduced its price target from $80 to $60 after disappointing fourth quarter earnings and 2016 guidance.

ServiceNow

Analysts reduced ServiceNow's price target from $75 to $70 after the company reported billings that failed to meet consensus estimates.

Qlik

Baird reduced its price target from $30 to $26 to reflect disappointing 4Q15 earnings.

Red Hat

Red Hat's stock has been hurt by the overall declining software industry with a price target reduced from $90 to $80.

Workday

Workday has been hurt by the overall industry decline, with Baird lowering their price target from $85 to $70.

Workiva

While Baird reduced Workiva's price target from $19 to $15, they did note that the company could be beginning a meaningful long-term growth opportunity.