Market Overview

Little Upside Seen In Apptio

Little Upside Seen In Apptio
The Week Ahead: Earnings Season Continues, Several IPOs, Notable Conferences On The Docket
46 Biggest Movers From Yesterday

Goldman Sachs’ Jesse Hulsing believes Apptio Inc (NASDAQ: APTI) is well positioned to deliver sustained growth, given the company’s leadership position in the market and a “relatively benign” competitive environment.

Hulsing initiated coverage of the company with a Neutral rating and price target of $21.

Limited Upside

The analyst believes the stock could have 2 percent upside potential and is fairly valued at present, given Apptio’s lack of efficiency and “corresponding relative profitability and cash flow generation.”

Hulsing mentioned that among the two core growth drivers for the company has been new customers among the Fortune 1000.

Related Link: Lock Up Expirations Today From Apptio, AC Immune, Valvoline And Gridsum

Growth Drivers

“The company has made changes to its products and selling motion which should lead to a higher mix of growth from smaller enterprises and the installed base,” the analyst stated.

Another growth driver could be improving efficiency. Hulsing noted that Apptio’s customer acquisition cost was improving and sustained improvement could be the key to achieving the estimates and turning free cash flow positive in FY17.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for APTI

Oct 2017Bank of AmericaMaintainsBuy
Oct 2017BarclaysMaintainsEqual-Weight
Oct 2017OppenheimerMaintainsOutperform

View More Analyst Ratings for APTI
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Jesse HulsingAnalyst Color Initiation Analyst Ratings Tech Best of Benzinga


Related Articles (APTI)

View Comments and Join the Discussion!

Partner Center