Market Overview

Tableau Is Bernstein's Highest Conviction Buy In Mid-Cap Software Space

Tableau Is Bernstein's Highest Conviction Buy In Mid-Cap Software Space

Bernstein has named Tableau Software Inc (NYSE: DATA) its most likely Outperformer in the Mid-Cap Software Space based on a risk/reward basis and set a price target of $79.

While the stock has lagged over the last 18 months under old management, Bernstein analyst Zane Chrane doesn't expect this trend to continue.

“We believe revenue deceleration was largely due to temporary growing pains, which have been corrected, and the market underappreciates the strength of Tableau's products and ecosystem,” said Chrane.

4 Reasons For A Bull Case With A 27% Upside

  1. Tableau should have a higher-than-expected growth rate in Modern Business Intelligence (BI) and the analytics market as Tableau continues to offer the best products in the software industry. Specifically, Chrane highlighted, “Tableau has superior functionality, usability, and business benefits when compared to competitors' solutions by end users and line-of-business leaders.”
  2. New CEO Adam Selipsky is transitioning to a more aggressive growth model in order to increase subscription revenue
  3. The transition to Cloud should spur greater revenue per customer, and push more individuals to adapt to Tableau software. Chrane stated, “We believe the market does not give sufficient credit to Tableau for its competitive strength in the Business Intelligence market which is growing 20%+ and in which Tableau maintains the dominant share.” Thus, he expects Tableau to beat consensus estimates in both revenue and billings.
  4. Chrane noted he isn't aware of any software company with so many growth factors have such a low multiple, and this is what is pushing him to see 27 percent upside in Tableau.

Tableau was trading around $62.40 Wednesday morning.

Related Links

Tableau Software Remains Best Of Breed Leader In Data Discovery Analytics; Splunk A Category Leader In Software

'Getting Comfortable' With The Tableau Software Story

Latest Ratings for DATA

Jul 2019BernsteinDowngradesOutperformMarket Perform
Jun 2019WedbushDowngradesOutperformNeutral
Jun 2019CitigroupDowngradesBuyNeutral

View More Analyst Ratings for DATA
View the Latest Analyst Ratings


Related Articles (DATA)

View Comments and Join the Discussion!

Posted-In: Bernstein Zane ChraneAnalyst Color Long Ideas Price Target Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

GSYBMO CapitalMaintains71.0
ARBMO CapitalMaintains3.5
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
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