Market Overview

Cloudera Issues Weak Guidance; Deutsche Bank Downgrades On Risk Of 'Demand Shift'

Share:
Cloudera Issues Weak Guidance; Deutsche Bank Downgrades On Risk Of 'Demand Shift'

Cloudera Inc (NYSE: CLDR) reported better-than-expected fourth-quarter results after the close Tuesday, but issued weak guidance for the first quarter of 2019 as well as the full fiscal year. 

The stock reacted to the sour guidance with a steep move to the downside.

The Analyst

Reviewing the results, Deutsche Bank analyst Karl Keirstead downgraded shares of Cloudera from Buy to Hold and reduced the price target from $23 to $18, suggesting 19-percent downside from current levels.

The Thesis

Following two strong quarters that led to a rally in Cloudera shares over the past four to five months, the company issued below-consensus guidance due to a Q4 bookings miss and pending field sales changes, Keirstead said in a note. (See the analyst's track record here.) 

Although Cloudera attributed the predicament to reps being "too focused on new logos and not expansion opportunities," Deutsche Bank downgraded the company on the risk that it's in fact undergoing "an end market or demand shift that will take more time to recover from," according to Deutsche Bank.

The Price Action

Cloudera shares had gained about 23 percent over the past year through Tuesday.

The stock was plunging 37.28 percent at the time of publication Wednesday morning. 

Related Links:

Mizuho: After Industry Consolidation, Cloudera Emerges As A Buy

Jim Cramer Advises His Viewers On Cloudera, Teradyne, And More

Latest Ratings for CLDR

DateFirmActionFromTo
Jun 2019DowngradesBuyNeutral
Jun 2019DowngradesBuyHold
May 2019MaintainsBuy

View More Analyst Ratings for CLDR
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Karl Keirstead softwareAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (CLDR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WUBADowngrades
DLTRUpgrades
ARCCDowngrades
GTYHInitiates Coverage On7.0
NKEMaintains100.0
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 vipaccounts@benzinga.com

Mid-Morning Market Update: Markets Open Lower; Lennar Earnings Top Views

Small-Caps Look To Build On March Steadiness