Apptio's Value Is In Its Ability To Address Real Problems With Unique Solutions
Jefferies initiated Apptio Inc (NASDAQ: APTI) at a Buy, with a $29 price target, as the firm sees the company as addressing a persistent problem with a real solution.
Finding Success Where Others Failed
Analyst John DiFucci believes the company's unique data management platform, intuitive SaaS-based application suite and attractive value propositions to IT organizations positions it to successfully penetrate the logical technology business management market, where others have found difficulty in the past.
Massive Market Opportunity
Jefferies estimates a $8.1 billion opportunity for the company's current product set in 2016. This, according to the firm, could grow to $9.3 billion by 2020, representing 3 percent CAGR. The firm believes the technology business management sector to be a largely untapped, logical opportunity. Accordingly, the firm sees the company benefiting from the first successful mover advantage.
Up-Sell, Cross-Sell Opportunities
Jefferies sees significant up-sell and cross-sell opportunities, as the company's platform currently has five discrete applications that can be deployed in a modular fashion. According to the firm, each app adds tangential and incremental value to the platform.
Jefferies, though seeing opportunities in more generic applications, recommends that the company focuses solely on establishing the TBM market and continuing to drive success in this massive opportunity for now.
At last check, shares of Apptio were down 0.58 percent at $20.40.
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Latest Ratings for APTI
|Feb 2017||RBC Capital||Upgrades||Sector Perform||Outperform|
|Oct 2016||Bank of America||Initiates Coverage On||Buy|
|Oct 2016||JP Morgan||Initiates Coverage On||Neutral|
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